US stocks retreat

Comment on this story
IOL wall street THE PHOTO HOLIC File image

New York - US stocks opened lower Wednesday amid persistent concerns over the eurozone as Cyprus moves to implement the EU-IMF rescue plan.

In the first five minutes of trade, the Dow Jones Industrial Average gave up 114.71 (0.79 percent) to fall to 14,444.94.

The broad-based S&P 500 sank 11.65 (0.74 percent) to 1,552.12, while the tech-rich Nasdaq Composite Index dropped 25.15 (0.77

percent) to 3,227.33.

The retreat followed strong gains Tuesday that resulted in a record high for the Dow and a near-all-time high to the S&P 500.

Patrick O'Hare of characterised Tuesday's rally as having a “facade of bullishness” and noted that the rally was led by “defensive-oriented” sectors, such as health care and utilities.

“Follow-through has been lacking this morning for reasons that are both convenient and clear,” O'Hare wrote. “Headlines out of Europe are largely to blame.”

In Europe there were fresh signs of political instability in Italy, weak growth in France and continued uncertainty in Cyprus, where the banks are expected to reopen Thursday after being shutdown to engineer a rescue. - Sapa-AFP

sign up

Comment Guidelines

  1. Please read our comment guidelines.
  2. Login and register, if you haven’ t already.
  3. Write your comment in the block below and click (Post As)
  4. Has a comment offended you? Hover your mouse over the comment and wait until a small triangle appears on the right-hand side. Click triangle () and select "Flag as inappropriate". Our moderators will take action if need be.

  5. Verified email addresses: All users on Independent Media news sites are now required to have a verified email address before being allowed to comment on articles. You are only required to verify your email address once to have full access to commenting on articles. For more information please read our comment guidelines