NEW YORK (AP) – The U.S. stock market turned lower on Friday as a setback in talks between Greece and its creditors heightened concerns that the country could default on its debts. An unexpected decision by the International Monetary Fund to walk away from talks with Greece spurred the selloff in Europe and America.
KEEPING SCORE: As of 2:20 p.m. Eastern Time, the Standard & Poor’s 500 index was down 14 points, or 0.7 percent, to 2,094. The Dow Jones industrial average dropped 147 points, or 0.8 percent, to 17,892, and the Nasdaq composite lost 28 points, or 0.6 percent, to 5,054.
The losses were modest but broad: All 30 companies in the Dow average and all 10 industries in the S&P 500 traded lower.
WALKOUT: At a summit meeting in Brussels late Thursday, the IMF pulled its negotiators out of talks with Greece, saying there had been no progress and that major differences remained on key issues. Without a deal by the end of the month, Greece faces the prospect of going bankrupt and dropping the euro currency.
UNCERTAINTY: Ninh Chung, head of investment strategy at SVB Asset Management, said that markets are likely to make sudden turns until Greece and its creditors reach a deal. Earlier this week, markets on both sides of the Atlantic rallied on reports of progress in the talks. “There had been optimism over Greece,” Chung said, “and now it seems like we’ve had a complete 180.”
EUROPE: Major indexes in Europe slumped, erasing gains made earlier in the week. Greece’s market fell the most, with the main Athens index down 6 percent. Germany’s DAX sank 1.2 percent, and the CAC-40 in France finished with a loss of 1.4 percent. Britain’s FTSE 100 lost 1 percent.
WINGSTOP POP: Back in the U.S., shares of Wingstop vaulted 59 percent in their first day of trading as a public company. The chicken-wings chain raised $110.2 million in its initial public offering late Thursday, selling shares to investors at $19 each. In late afternoon trading, Wingstop was up $11.28 to $30.26.
CRUDE: Benchmark U.S. crude sank 71 cents to $60.06 a barrel in New York. Brent crude, a benchmark for international oil, fell 31 cents to $65.48.
BONDS: U.S. government bond prices wavered. The yield on the 10-year Treasury note was trading at 2.38 percent, unchanged from the day before.
METALS: Precious metals settled slightly lower. Gold fell $1.20 to $1,179.20 an ounce, while silver slipped 14 cents to $15.83 an ounce. Copper picked up 1 cent to $2.68 a pound.
ASIA’S DAY: Japan’s Nikkei 225 inched up 0.1 percent. In China, the Shanghai composite index advanced 0.9 percent, and Hong Kong’s Hang Seng rose 1.4 percent.