US stocks sink on new Greece fears

NEW YORK: US stocks dropped sharply in the opening minutes of trade on Monday under the cloud of new eurozone worries and following steep falls on European bourses.

The Dow Jones Industrial Average sank 86.31 points (0.79 percent) to 10,905.82 in the first 15 minutes of trading.

The broader S&P 500 fell 7.62 points (0.66 percent) to 1,146.61, while the tech-heavy Nasdaq Composite dropped 9.31 points (0.38 percent) to stand at 2,458.68.

Earlier, global stock markets tumbled amid renewed signs of trouble in the eurozone, including a warning from Germany's economy minister that Europe could not rule out an "orderly default" by Greece.

Greece was rocked by new protests over the weekend, while the government in Athens announced plans for new austerity measures, reflecting concerns that it was struggling to fulfill its fiscal promises.

Fears also mounted that the Moody's ratings agency would downgrade France's top banks because of their exposure to Greek debt, sparking a steep sell-off in shares of Societe Generale and other French lenders.

"The market's perception of events unfolding in Europe is moving from bad to worse amid a swirl of reports with worrisome undertones," said Patrick O'Hare, an analyst with Briefing.com.

Bond prices retreated slightly from last week's record highs. The yield on the 10-year Treasury note rose to 1.93 percent from 1.92 percent late Friday, while that on the 30-year bond increased to 3.26 percent from 3.25 percent.

Bond prices and yields move in opposite directions.

Copyright AFP (Agence France-Presse), 2011