NEW YORK — Renewed concern about Greece’s debt problems short-circuited the big stock-market rally.
The Dow Jones industrial average closed Thursday with a gain of just 5 points after earlier rising to a new high for 2010. Broader indexes slipped.
The market’s advance fizzled after European Central Bank president Jean-Claude Trichet told French television that Europe must take responsibility for its financial problems. That raised concerns about when a rescue for Greece might come.
Investors have been concerned for months that problems in Greece and other debt-strapped countries in Europe would spread and spoil a global economic rebound.
“Any time we see comments about it, it seems to spook the market,” said Adam Gould, senior portfolio manager at Direxion Funds in New York, referring to Greece’s financial problems.
He said traders still expect Greece will get a bailout, but the questions about how unnerved investors. “It’s more the uncertainty.”
The concerns about Greece weakened the euro and raised demand for the dollar. The climb in the dollar hit prices of commodities like energy. That, in turn, hurt shares of energy and materials stocks.
The worries about Greece and tepid demand at a Treasury Department bond auction for a third straight day overshadowed early enthusiasm about corporate news. Stronger earnings and a higher forecast from retailer Best Buy Co. and a better-than-expected outlook from wireless chip maker Qualcomm Inc. lifted the market in early trading.
The Dow rose 5.06, or 0.1 percent, to 10,841.21. It has risen in 16 of the past 20 trading days. The Standard & Poor’s 500 index fell 1.99, or 0.2 percent, to 1,165.73, while the Nasdaq composite index fell 1.35, or 0.1 percent, to 2,397.41.
Bond prices fell again after a third straight auction for government debt drew less interest than in past months. That is a worry for investors because Washington could have to boost interest rates to entice buyers.
