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US Stocks Crash In The Light Of Europe's Debt Problems

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US Stocks Crash In The Light Of Europe's Debt Problems

US stocks closed at their lowest in past three months yesterday, after Standard & Poor's labeled Greece’s debt as ‘junk.’ The ratings agency also downgraded Portugal’s credit rating by two notches, reigniting worries regarding Europe's debt issues. Equity strategist Peter Boockvar at Miller Tabak said that the downgrade will raise the cost of capital, prompting people to reassess risk in everything else,

While the Dow Jones Industrial Average plunged 1.9% or 213.04 points to close at its worst since February 4 at 10,991.99, the S&P 500 Index closed at 1,183.71, after losing 28.34 points or 2.3%. The Nasdaq Composite Index slipped 51.48 points or 2%, to 2,471.47.

On the S&P 500 Index, American International Group Inc (NYSE: AIG) and Office Depot Inc (NYSE: ODP), which were down 16% and 21% respectively, were among the session's heaviest losers. While AIG fell after a downgrade by Keefe Bruyette & Woods, ODP lost after it announced its quarterly results. Among the industry groups in the index, materials and consumer discretionary shares lost the most.

Read more from Benzinga's Markets.

Posted-In: Keefe Bruyette & Woods Miller Tabak Peter BoockvarNews Intraday Update Markets Movers

 

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