Stocks turn negative for year on Greece woes
Monday, 10 May 2010
NEW YORK, May 9 (Reuters): Stocks turned negative for the year Friday on fears of another credit crisis stemming from Greece's souring finances and lingering questions about what triggered the previous session's dramatic plunge.
The major stock indexes finished Friday's volatile session from 1 per cent to 2 per cent lower.
The weekly declines for the Dow and the S&P 500 were the steepest since March 2009 when the market hit a 12-year low. The Nasdaq had its largest weekly drop since November 2008.
Wall Street's "fear gauge" -- the CBOE volatility index -- rose 25 per cent, while the volume of shares traded was the second highest this year.
"Europe's debt crisis is a big issue that won't go away any time soon. But investors have grown more concerned that the environment just isn't safe, period," said Stephen Massocca, managing director at Wedbush Morgan in San Francisco.
Governments around the world tried to calm markets after fears about Greece's debt crisis spread further. The cost of protecting European bank debt against default reached levels not seen since the height of 2009's economic crisis.
The Dow Jones industrial average fell 139.89 points, or 1.33 per cent, to end at 10,380.43. The Standard & Poor's 500 Index was down 17.27 points, or 1.53 per cent, to end at 1,110.88. The Nasdaq Composite Index finished 54 points lower, or 2.33 per cent, at 2,265.64.
For the week, the Dow was off 5.7 per cent, the S&P 500 was down 6.4 per cent and the Nasdaq dipped 8 per cent. Over the past two weeks the Nasdaq has fallen more than 10 per cent, the threshold which many traders define as a market correction.
The Nasdaq fared the worst Friday as technology stocks led the broad market lower. Apple Inc ended down 4.2 per cent to $235.86 and Intel Corp dipped 0.9 per cent to $21.31.
The S&P 500 is sitting on top of its 200-day moving averages and "this is where the market has to hold for the bull market to hold up," said John Kosar, market technician and president of Asbury Research in Chicago. The broad index is up 64 per cent from its 12-year low in March.
Thursday's sell-off drove the Dow average down nearly 1,000 points -- its biggest-ever intraday point drop.
The fall may have been exacerbated by erroneous trades that showed some shares briefly fell to nearly zero in value. The Nasdaq and other exchanges said they would cancel erroneous trades.
The major stock indexes finished Friday's volatile session from 1 per cent to 2 per cent lower.
The weekly declines for the Dow and the S&P 500 were the steepest since March 2009 when the market hit a 12-year low. The Nasdaq had its largest weekly drop since November 2008.
Wall Street's "fear gauge" -- the CBOE volatility index -- rose 25 per cent, while the volume of shares traded was the second highest this year.
"Europe's debt crisis is a big issue that won't go away any time soon. But investors have grown more concerned that the environment just isn't safe, period," said Stephen Massocca, managing director at Wedbush Morgan in San Francisco.
Governments around the world tried to calm markets after fears about Greece's debt crisis spread further. The cost of protecting European bank debt against default reached levels not seen since the height of 2009's economic crisis.
The Dow Jones industrial average fell 139.89 points, or 1.33 per cent, to end at 10,380.43. The Standard & Poor's 500 Index was down 17.27 points, or 1.53 per cent, to end at 1,110.88. The Nasdaq Composite Index finished 54 points lower, or 2.33 per cent, at 2,265.64.
For the week, the Dow was off 5.7 per cent, the S&P 500 was down 6.4 per cent and the Nasdaq dipped 8 per cent. Over the past two weeks the Nasdaq has fallen more than 10 per cent, the threshold which many traders define as a market correction.
The Nasdaq fared the worst Friday as technology stocks led the broad market lower. Apple Inc ended down 4.2 per cent to $235.86 and Intel Corp dipped 0.9 per cent to $21.31.
The S&P 500 is sitting on top of its 200-day moving averages and "this is where the market has to hold for the bull market to hold up," said John Kosar, market technician and president of Asbury Research in Chicago. The broad index is up 64 per cent from its 12-year low in March.
Thursday's sell-off drove the Dow average down nearly 1,000 points -- its biggest-ever intraday point drop.
The fall may have been exacerbated by erroneous trades that showed some shares briefly fell to nearly zero in value. The Nasdaq and other exchanges said they would cancel erroneous trades.