Investing.com - U.S. stocks opened sharply lower on Wednesday, as political uncertainty in Greece and fears that the country may leave the euro zone continued to weigh on investor confidence.
During early U.S. trade, the Dow Jones Industrial Average dropped 0.82%, the S&P 500 index tumbled 0.97% lower, while the Nasdaq Composite index declined 0.75%.
Sentiment was hit after Alexis Tsipras, the head of Greece’s second-biggest party Syriza, said on Tuesday that Greece's financial aid package is null and void, and called for a moratorium on Greek debt payments.
Tsipras was to hold talks with Greece’s leading political parties later in the day, as attempts to form a government continue, but if talks fail a second round of elections will have to be held.
Investors were also fearful that French president-elect Francois Hollande’s focus on growth rather than austerity measures as a means to tackle the euro zone’s debt crisis could spark tensions with Germany.
Financial stocks were broadly lower as shares in JP Morgan plunged 1.67% and Citigroup tumbled 1.44%, while Goldman Sachs and Bank of America declined 0.97% and 0.51% respectively.
JP Morgan was reportedly seeking to move its least profitable checking customers into new prepaid debit card accounts to boost earnings in a business crimped by new regulations. Shares in the U.S. lender tumbled 0.92% in pre-market trade.
Meanwhile, Yahoo also plummeted 1.43% after director Patti Hart, who led the hiring of CEO Scott Thompson, said she will give up her seat on Yahoo's board as the Internet company launches an investigation into the chief executive's educational background.
Thompson recently apologized to employees after being accused last week by activist investor Daniel Loeb of padding his resume.
Elsewhere, biotech companies GlaxoSmithKline plunged 1.46% as it said it was taking its unsolicited USD2.6 billion takeover bid for Human Genome Sciences directly to shareholders.
Among earnings, shares in Macy’s plummeted 5.34% after reporting a higher first-quarter profit, helped by rising online sales, and the retailer maintained its profit and same-store sales forecast for the fiscal year.
On the upside, Toyota shares surged 2.03% after the auto maker reported a surge in fourth-quarter profits and forecast a big recovery in annual earnings following a year of disruptive natural disasters.
Disney also reported stronger revenue and forecast-beating profit in the second quarter, thanks to cable channels and theme parks, sending shares up 3.05%.
Other stocks in focus included Cisco Systems and News Corp., due to report results later in the day.
Across the Atlantic, European stock markets were sharply lower. The EURO STOXX 50 tumbled 1.37%, France’s CAC 40 declined 1.11%, Germany's DAX dropped 0.46%, while Britain's FTSE 100 plummeted 1.14%.
During the Asian trading session, Hong Kong's Hang Seng Index slumped 0.6%, while markets in Japan’s Nikkei 225 Index tumbled 1.5%.
Later in the day, the U.S. was to produce government data on crude oil stockpiles. A 10-year U.S. government bond auction was also scheduled.
During early U.S. trade, the Dow Jones Industrial Average dropped 0.82%, the S&P 500 index tumbled 0.97% lower, while the Nasdaq Composite index declined 0.75%.
Sentiment was hit after Alexis Tsipras, the head of Greece’s second-biggest party Syriza, said on Tuesday that Greece's financial aid package is null and void, and called for a moratorium on Greek debt payments.
Tsipras was to hold talks with Greece’s leading political parties later in the day, as attempts to form a government continue, but if talks fail a second round of elections will have to be held.
Investors were also fearful that French president-elect Francois Hollande’s focus on growth rather than austerity measures as a means to tackle the euro zone’s debt crisis could spark tensions with Germany.
Financial stocks were broadly lower as shares in JP Morgan plunged 1.67% and Citigroup tumbled 1.44%, while Goldman Sachs and Bank of America declined 0.97% and 0.51% respectively.
JP Morgan was reportedly seeking to move its least profitable checking customers into new prepaid debit card accounts to boost earnings in a business crimped by new regulations. Shares in the U.S. lender tumbled 0.92% in pre-market trade.
Meanwhile, Yahoo also plummeted 1.43% after director Patti Hart, who led the hiring of CEO Scott Thompson, said she will give up her seat on Yahoo's board as the Internet company launches an investigation into the chief executive's educational background.
Thompson recently apologized to employees after being accused last week by activist investor Daniel Loeb of padding his resume.
Elsewhere, biotech companies GlaxoSmithKline plunged 1.46% as it said it was taking its unsolicited USD2.6 billion takeover bid for Human Genome Sciences directly to shareholders.
Among earnings, shares in Macy’s plummeted 5.34% after reporting a higher first-quarter profit, helped by rising online sales, and the retailer maintained its profit and same-store sales forecast for the fiscal year.
On the upside, Toyota shares surged 2.03% after the auto maker reported a surge in fourth-quarter profits and forecast a big recovery in annual earnings following a year of disruptive natural disasters.
Disney also reported stronger revenue and forecast-beating profit in the second quarter, thanks to cable channels and theme parks, sending shares up 3.05%.
Other stocks in focus included Cisco Systems and News Corp., due to report results later in the day.
Across the Atlantic, European stock markets were sharply lower. The EURO STOXX 50 tumbled 1.37%, France’s CAC 40 declined 1.11%, Germany's DAX dropped 0.46%, while Britain's FTSE 100 plummeted 1.14%.
During the Asian trading session, Hong Kong's Hang Seng Index slumped 0.6%, while markets in Japan’s Nikkei 225 Index tumbled 1.5%.
Later in the day, the U.S. was to produce government data on crude oil stockpiles. A 10-year U.S. government bond auction was also scheduled.