Steep Drop In S&P 500 On Europe Worries

The Standard & Poor’s 500 index fell 1.6 per cent early on Tuesday, bringing it into what many consider to be a bear market. The yield on the 10-year Treasury note fell near a record low as investors piled into lower-risk assets.

Stocks fell broadly as investors worried that Greece might be edging closer to default, which would cause heavy losses for banks that hold Greek debt and rattle global financial markets. Greece has said it wouldn’t be able to make budget cuts it had agreed to as part of a deal to receive emergency loans.

The S&P 500 fell 20 points, or 1.8 per cent, to 1,079 as of 10:15 a.m. (7.45 p.m. IST). That brought the widely used index 21 per cent below its April 29 high of 1,363, meeting the criteria of a bear market.

From: http://ping.fm/7s7Db