Concerns over Greece’s latest effort to avoid a default weighed on U.S. financial markets Monday.
The Dow Jones industrial average slipped 107.67 points, or 0.6 percent, to 17,791.17. The Standard & Poor’s 500 index slid 9.68 points, or 0.5 percent, to 2,084.43. The Nasdaq composite lost 21.13 points, or 0.4 percent, to 5,029.97.
Monday’s slide got started early after weekend negotiations between Greece and its creditors failed to get the struggling nation closer to a bailout deal.
Greek leaders want to get access to the final 7.2 billion euro ($8.2 billion) of their bailout program that’s needed to repay debts and avoid a possible default that could trigger an exit from the euro; the bailout package expires at the end of the month.
“All eyes, including our own, are on Greece,” said Erik Davidson, chief investment officer for Wells Fargo Private Bank. “This is a grand experiment. If it were to go awry, it would certainly have implications.”
Investors also got some discouraging news from the Federal Reserve Bank of New York’s latest Empire State manufacturing index. This month’s reading fell to negative 2, which means manufacturing activity is contracting. The report suggested manufacturers are still being held back by a strong dollar and cutbacks in investment by oil and gas drillers.
Traders did get some good news on the homebuilding sector. A survey of U.S. homebuilders vaulted to the highest level since last fall.
Beyond the day’s action, investors were looking ahead to Wednesday’s meeting of the Federal Reserve’s policymakers, when the central bank is expected to deliver an update on its interest rate policy.
