LONDON (ShareCast) - US stocks plunged on Monday, as the crisis in Greece drove the Dow Jones Industrial Average to the biggest drop since June 2013.
The Dow Jones closed down 350.33 points at 17,596.35, while the S&P 500 and the Nasdaq shed 44 and 104 points respectively.

Greece on the brink

European stocks tumbled, led lower by peripheral markets, while Greek bonds were battered as the debt saga in Athens took a turn for the worse, although the euro recovered from early losses against the US dollar, surging 2.38% against the greenback.

Greek Prime Minister Alexis Tsipras has called for a referendum on 5 July so the nation can decide whether to accept the terms of the bailout being offered by international creditors.

"A 'Yes' vote would see Athens heading back to the negotiation tables with a softer mandate on austerity," said CMC Markets' analyst Jasper Lawler.

"This might enable Greece's politician's to accept terms put forth by creditors that they weren't able to previously."

The dollar fell 0.26% against the pound and was broadly flat against the yen, while gold futures climbed 0.49% to $1,179.00.

"The current travails of the Greek economy are not enough to worry the US but the knock on consequences to the Eurozone are enough to see a palpable hesitancy come over the FOMC as the timeline for interest rate rises has remained a
prospect for a future as yet no nearer to happening," said IG's analyst Alastair McCaig.

Elsewhere, Asian stock markets closed with heavy losses, with Chinese equities in bear-market territory, as fears about Greece hammered investor sentiment.

Not even an interest rate cut by the People's Bank of China couldn't halt the slide on stock markets in Shanghai

"Beijing is battling to keep investor confidence high, but the latest interest rate cut wasn't enough to prevent a bear market," said IG's analyst David Madden.

"Once the sentiment turns sour it is difficult to regain it, and the sea of selling overnight in the Far East couldn't have come at a worse time now that Greece is a day from defaulting."

Oil prices tumbled, with West Texas Intermediate losing 2.48% to $58.19 a barrel, while Brent dropped 2.16% to $61.92 a barrel.

Banks bear the brunt

Pending home sales rose to their highest level in nine years in May, according to National Association of Realtors, although market reaction was fairly muted.

In corporate news, the Greek crisis weighed heavily on the US banking sector, with Citigroup and Goldman Sachs both losing 2.59%, while JP Morgan fell 2.59%.

General Electric slid 1.66% after announcing it will sell its US, Mexico, Australia and New Zealand fleet businesses to Element Financial for $6.9bn.



S&P 500 - Risers
Peabody Energy Corp. (BTU) $2.51 +9.61%
Amphenol Corp. (APH) $56.84 +2.08%
Pentair plc (PNR) $64.43 +1.07%
Nabors Industries Ltd. (NBR) $14.51 +0.76%
Southern Co. (SO) $41.96 +0.17%
Consolidated Edison Inc. (ED) $58.13 +0.05%
Dominion Resources Inc. (D) $67.29 +0.03%
Safeway Inc. (SWY) $35.10 +0.00%
Zimmer Biomet Holdings Inc (ZBH) $113.56 +0.00%
Covidien Plc (COV) $106.71 +0.00%

S&P 500 - Fallers
Harman International Industries Inc. (HAR) $118.46 -6.07%
Goodyear Tire & Rubber Co. (GT) $29.64 -5.59%
News Corp Class A (NWSA) $14.45 -4.90%
Noble Energy Inc. (NBL) $42.66 -4.80%
Micron Technology Inc. (MU) $18.72 -4.78%
Cablevision Systems Corp. (CVC) $24.01 -4.68%
AbbVie Inc (ABBV) $67.18 -4.66%
Staples Inc. (SPLS) $15.32 -4.55%
E*TRADE Financial Corp. (ETFC) $29.34 -4.48%
Newfield Exploration Co (NFX) $34.84 -4.47%

Dow Jones I.A - Risers

Dow Jones I.A - Fallers
E.I. du Pont de Nemours and Co. (DD) $63.64 -2.99%
Visa Inc. (V) $66.72 -2.95%
Boeing Co. (BA) $138.73 -2.63%
Cisco Systems Inc. (CSCO) $27.54 -2.62%
Goldman Sachs Group Inc. (GS) $207.65 -2.59%
American Express Co. (AXP) $77.82 -2.57%
JP Morgan Chase & Co. (JPM) $67.20 -2.54%
Merck & Co. Inc. (MRK) $57.29 -2.05%
Intel Corp. (INTC) $30.39 -2.03%
3M Co. (MMM) $153.95 -2.00%

Nasdaq 100 - Risers
Catamaran Corp (CTRX) $61.09 +0.03%

Nasdaq 100 - Fallers
Micron Technology Inc. (MU) $18.72 -4.78%
Staples Inc. (SPLS) $15.32 -4.55%
Cognizant Technology Solutions Corp. (CTSH) $61.18 -4.15%
Amgen Inc. (AMGN) $151.62 -4.05%
Sirius XM Holdings Inc (SIRI) $3.71 -3.89%
Vertex Pharmaceuticals Inc. (VRTX) $122.03 -3.81%
Mattel Inc. (MAT) $25.90 -3.72%
Alexion Pharmaceuticals Inc. (ALXN) $177.65 -3.69%
Monster Beverage Corp (MNST) $134.39 -3.60%
Garmin Ltd. (GRMN) $43.98 -3.49%

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