Stocks open lower despite pro-bailout victory in Greece
Stocks opened lower Monday on Wall Street as Greece’s election results failed to ease investors’ concerns over Europe’s continuing financial turmoil.
Major U.S. indexes were in negative territory shortly after the opening bell, following a slide by European stock markets that were initially up sharply after Greece’s pro-austerity New Democracy party won in that country’s elections Sunday.
The Dow Jones industrial average was down 49 points, or 0.4%, to 12,718 in early trading.
The broader Standard & Poor’s 500 index was down 4.9 points, or 0.4%, to 1,338.
The technology-heavy Nasdaq turned briefly positive but was down 3.4 points, or 0.1%, to 2,870.
Whatever relief investors took from Greece’s election — and the stronger likelihood that a new government would abide by the country’s bailout terms — appeared to fade as other problems emerged.
Spain, a much larger economy than Greece, saw it’s borrowing costs jumped higher, with its 10-year bond yields surpassing 7%.
Last week Spain accepted a $125-billion bailout of its troubled banking system.
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