NEW YORK — The U.S. stock market stabilized Tuesday as investors followed the latest developments in the Greek debt saga.
Stocks edged higher a day after the market had its worst day of the year. That slump was prompted by a breakdown in talks between Greece and its creditors. Greece’s European bailout program ended Tuesday at midnight, and the country hasn’t yet managed to agree on an extension or a new deal with creditors.
Even though the standoff in Greece is far removed from the U.S., the global nature of financial markets will ensure that any ripple effects will be felt across the Atlantic, said Mike Ryan, chief investment strategist at UBS Wealth Management Americas.
“There are obvious concerns that failure to reach some kind of an agreement could put Greece on a path to a eurozone exit,” Ryan said. “If there is going to be volatility in global markets, it will be reflected in U.S. markets as well.”
The Standard & Poor’s 500 index rose 5.47 points, or 0.3 percent, to 2,063.11 The index closed out the quarter with a loss of 0.2 percent, its first quarterly loss since dropping 1 percent in the last three months of 2012.
The Dow Jones industrial average climbed 23.16 points, or 0.1 percent, to 17,619.51. The Nasdaq composite rose 28.40 points, or 0.6 percent, 4,986.87.
Bond insurers, including MBIA and Ambac, fell sharply for a second day as investors followed the debt crisis in Puerto Rico. Credit-rating firm Standard & Poor’s said that a default, or a restructuring, of the island’s debt within the next six months appeared inevitable.
The price of oil rose for the first time in a week as negotiations with Iran over its nuclear program were extended, potentially delaying a return of Iranian crude to the market.
Benchmark U.S. crude rose $1.14 to close at $59.47 a barrel in New York. U.S. crude finished the month down 83 cents, or 1.4 percent. Brent crude, a benchmark for international oils used by many U.S. refineries, rose $1.58 to close at $63.59 a barrel in London.
