U.S. markets sink with no EU resolution in sight
NEW YORK — US markets sank Monday after a three-week rally after a meeting of G20 finance chiefs failed to boost confidence that a solution to the eurozone debt crisis is near.
The Dow Jones Industrial Average was down 246.58 points (2.12 percent) to 11,397.91 in closing trade.
The broader S&P 500 fell 23.71 points (1.94 percent) to 1,200.87, while the tech-heavy Nasdaq Composite gained 52.93 (1.98percent) to 2,614.92.
Banks sank on a disappointing earnings report from Wells Fargo and doubt over accounting moves that produced solid returns for Citigroup.
“Markets were chopped down as German officials threw cold water on recent bailout plans,” said analysts at Brieing.com
“The officials said that the euphoria around an announcement on October 23 had gotten ahead of expectations and certain aspects of the plan still remain in question.
“In particular, the private rollout participation and the need for haircuts on Greek debt. This has led to selling pressure… as is the norm on uncertainty.”