NEW YORK--US. stocks tumbled on concern this week’s European Union summit will fail to tame a crisis which put American earnings on pace for the first decline since 2009.
Technology, financial and energy shares dropped the most among 10 groups in the Standard & Poor’s 500 Index. Bank of America and Chesapeake Energi Corp slumped at least 4.2%.
The S&P 500 slid 1.6% to 1,313.72 at 4 p.m. New York time as 470 of its 500 stocks declined. The Dow Jones Average fell 138.12 points, or 1.1 percent, to 12,502.66.
“There are reasons for investors to be concerned,” Stephen Wood, the New York-based chief market strategist for Russell Investments, said in a telephone interview.
Equities slumped as Chancellor Angela Merkel hardened her resistance to euro-area debt sharing, setting Germany on a collision course with its allies at a summit on June 28.
Cyprus said it will seek a financial lifeline from the euro area’s firewall funds. Greek Prime Minister Antonis Samaras consented to the resignation of his finance minister, Vassilios Rapanos.
Billionaire investor George Soros warned that a failure by leaders meeting this week to produce drastic measures could spell the demise of the currency. (Bloomberg/tw)