An approaching deadline in the debt talks between Greece and its creditors weighed heavy on Wall Street causing the Dow Jones Industrial Average to drop 0.9 percent to 17,914 while the broader S&P 500 fell 0.8 percent to 2,096 in midday trading.
The declines followed erosion of European stocks prices. In the U.S., all sectors were being negatively impacted. The S&P Retailing Industry Group index was down 0.6 percent to 1,142. Hudson Bay Co., Nordstrom Inc., J.C. Penney & Co. Inc., and Macy’s Inc. were all down between 0.5 and 1 percent. But a host of specialty stocks were up — lead by Buckle Inc., which posted better-than-expected same-store sales for May.
A research note from IHS Global Insight economists said that Greece and its creditors will “eventually reach an agreement but time is running out. We still asses that there are strong incentives on both sides to avoid a collapse in the negotiations. In particular, uncertainty surrounding the negotiations has taken Greece back to a recession, and a default could potentially have disastrous consequences on the Greek economy.”