Investing.com - U.S. stocks slid on Tuesday, snapping the previous session's rally, as investors fretted that a massive EU rescue package may not combat the debt crisis that has engulfed the euro zone.
During early U.S. trade, the Dow Jones Industrial Average was down 0.42%, the S&P 500 index slid 0.49% and the Nasdaq Composite index was down 0.48%.
The central component of the European aid package, which was announced on Monday, was a promise by EU nations to back EUR 440 billion in new loans to bail out Europe's heavily indebted economies.
After the plan triggered huge stock rallies, investors on Tuesday questioned the wisdom of solving the region's debt crisis by taking on more debt, amid doubts whether Greece will be able to carry out the harsh austerity steps needed to restructure its public finances.
Also Tuesday, Germany's opposition Social Democrats said they had not decided whether to support the European rescue package for the euro, and warned the country could end up footing the entire cost of the bill, Reuters reported.
Meanwhile, European stocks also slumped: France’s CAC 40 was down 1.51%; Germany's DAX shed 0.64%; Britain's FTSE 100 was down 1.89%; and the EURO STOXX 50 slipped 1.72%.
Later in the day, the U.S. Census Bureau was set to publish data on wholesale inventories, a signal of future business spending. Also Tuesday, a research group, the TechnoMetrica Institute of Policy and Politics, and a newspaper, Investor's Business Daily, were due to release a report on U.S. consumer confidence.
During early U.S. trade, the Dow Jones Industrial Average was down 0.42%, the S&P 500 index slid 0.49% and the Nasdaq Composite index was down 0.48%.
The central component of the European aid package, which was announced on Monday, was a promise by EU nations to back EUR 440 billion in new loans to bail out Europe's heavily indebted economies.
After the plan triggered huge stock rallies, investors on Tuesday questioned the wisdom of solving the region's debt crisis by taking on more debt, amid doubts whether Greece will be able to carry out the harsh austerity steps needed to restructure its public finances.
Also Tuesday, Germany's opposition Social Democrats said they had not decided whether to support the European rescue package for the euro, and warned the country could end up footing the entire cost of the bill, Reuters reported.
Meanwhile, European stocks also slumped: France’s CAC 40 was down 1.51%; Germany's DAX shed 0.64%; Britain's FTSE 100 was down 1.89%; and the EURO STOXX 50 slipped 1.72%.
Later in the day, the U.S. Census Bureau was set to publish data on wholesale inventories, a signal of future business spending. Also Tuesday, a research group, the TechnoMetrica Institute of Policy and Politics, and a newspaper, Investor's Business Daily, were due to release a report on U.S. consumer confidence.