Wall Street tumbles after two-day rally Stocks sank on Wednesday as Greek debt woes, U.S. data and disappointing profit forecasts fueled bearish sentiment, putting the market back on its downtrend after a two-day rally.
Forecasts from companies, including Nucor Corp, Owens Illinois and, underscored concern that economic sluggishness will hit earnings.
Bank stocks helped lead the decline after Moody’s Investors Service said it may cut the credit ratings of French banks, citing exposure to Greek debt. The French banks have $65 billion in overall net exposure, versus $40 billion for Germany and $41 billion for the United States, according to the Bank for International Settlements.
Declines in shares of insurers also outpaced the broader market, with the KBW insurance index down 2.8 percent. Allstate lost 2.4 percent to $29.49.
The KBW bank index was down 2 percent. Manufacturer 3M fell 1.6 percent to $91.13 and ranked among the biggest drags on the Dow. An index of semiconductor stocks dropped 1.7 percent, weighing on the Nasdaq.
“The downward trend that’s been in place for the last couple of months certainly remains intact, and I suspect it will remain intact until we get more concrete data with regard to the second quarter,” said Thomas Villalta, portfolio manager for Jones Villalta Asset Management in Austin, Texas.