Eurozone Worries, Stronger Dollar Sends Stocks Lower
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Eurozone debt issues, a stronger dollar and weak worldwide economic data got the best of stocks Monday.
The Dow closed off the lows but still down 131 points to 12,381. The Nasdaq fell 44 points and the S&P 500 fell 16.
A potential Greece debt default was in the spotlight and new worries in Italy emerged after a warning about a debt downgrade. Late Friday, Standard & Poors lowered Italy's sovereign credit outlook from Stable to Negative, suggesting a downgrade could be forthcoming. This news came just hours after Fitch downgraded Greece three notches. Following the news, Greek credit debt swaps rose to record levels and bond yields on its 10-year bonds jumped higher.
The dollar continued to strengthen against the Euro, with the Euro falling below $1.40, the lowest level since March, before recovering slightly.
Dollar strength and worries about slowing global demand sent oil tumbling Monday. Light, Sweet crude traded as low as $96.37 per barrel before recovering slightly.
Manufacturing data in the Eurozone also raised concerns. The Purchasing Managers' Index dropped to 54.8 in May, down from 58.0 in April and below the 57.5 expected by analysts.
The Dow closed off the lows but still down 131 points to 12,381. The Nasdaq fell 44 points and the S&P 500 fell 16.
A potential Greece debt default was in the spotlight and new worries in Italy emerged after a warning about a debt downgrade. Late Friday, Standard & Poors lowered Italy's sovereign credit outlook from Stable to Negative, suggesting a downgrade could be forthcoming. This news came just hours after Fitch downgraded Greece three notches. Following the news, Greek credit debt swaps rose to record levels and bond yields on its 10-year bonds jumped higher.
The dollar continued to strengthen against the Euro, with the Euro falling below $1.40, the lowest level since March, before recovering slightly.
Dollar strength and worries about slowing global demand sent oil tumbling Monday. Light, Sweet crude traded as low as $96.37 per barrel before recovering slightly.
Manufacturing data in the Eurozone also raised concerns. The Purchasing Managers' Index dropped to 54.8 in May, down from 58.0 in April and below the 57.5 expected by analysts.
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