Stocks fell 1 percent on Wednesday, with all S&P 500 sectors trading negative as concerns mounted over Greece’s future in the euro zone. Tech shares were among the day’s biggest decliners as a weaker-than-expected revenue forecast from Dell Inc (DELL.O), the third-largest computer maker, spurred fears that global tech spending was declining faster than had been previously anticipated.
Euro-zone officials have agreed that each euro-zone country must prepare an individual contingency plan in the event that Greece decides to leave the single currency bloc. The agreement was reached during a teleconference of the Eurogroup Working Group, which lasted for about an hour on Monday. An index of European shares .FTEU3 fell 2.2 percent to close at 971.99.
“It’s very frightening to hear about this kind of talk, even if it makes sense as a contingency, because the lack of a clear path there continues to be very problematic for banks,” said James Dunigan, chief investment officer of PNC Wealth Management in Philadelphia.
An S&P index of financial shares .GSPF fell 1.2 percent, with Citigroup Inc (C.N) down 2.1 percent at $26.35 and Capital One Financial (COF.N) off 1.9 percent at $49.34.
Dell Inc (DELL.O) plunged 17.8 percent to $12.40, on track for its biggest one-day drop in more than a decade after forecasting disappointing second-quarter revenue. Hewlett-Packard Co (HPQ.N) lost 4.7 percent to $20.76.
The Dow Jones industrial average .DJI was down 118.60 points, or 0.95 percent, at 12,384.21. The Standard & Poor’s 500 Index .SPX was down 11.75 points, or 0.89 percent, at 1,304.88. The Nasdaq Composite Index.IXIC was down 21.55 points, or 0.76 percent, at 2,817.53.
Falling oil prices also depressed the energy sector, with an S&P index of energy companies .GSPE down 1.2 percent. U.S. July crude oil future fell $2.30 to a session low of $89.55, trading below $90 a barrel for the first time since November 1, on easing concerns about Iran’s nuclear dispute with the West and increasing worries about global economic growth.
Earlier in the session, stocks had briefly trimmed their losses after data showed new U.S. single-family home sales rose more than expected in April and prices pushed higher. The latest reading on sales of new homes offered further evidence that the housing market was turning the corner.
The data “adds to the growing sense that housing is stabilizing, but it isn’t enough to overcome the global issues driving the day,” said Dunigan, who helps oversee $112 billion in assets.
Facebook Inc (FB.O) and banks, including Morgan Stanley (MS.N), were sued by the social networking leader’s shareholders, who claimed the defendants hid Facebook’s weakened growth forecasts ahead of its $16 billion initial public offering. The stock was up 2.3 percent at $31.70.
In the earnings arena, shares of Toll Brothers Inc (TOL.N) rose 1 percent to $27.30 after the largest U.S. luxury homebuilder reported a second-quarter profit, beating analysts’ estimates, compared with a year-ago loss.
