US stocks slump as Europe hopes fade
NEW YORK—US stocks followed their European counterparts lower Monday, dragged down by doubts over the strength of the EU pact aimed at ending the eurozone financial crisis.
The Dow Jones Industrial Average fell 162.49 points (1.33 percent) to 12,021.77 in closing trade.
The broader S&P 500 lost 18.66 points (1.49 percent) to 1,236.53, while the tech-rich Nasdaq Composite shed 34.59 (1.31 percent) to 2,612.26.
Wall Street stocks spent the session swimming in red.
The slump came “amid growing pessimism that last week’s fiscal pact agreement in Europe will yield substantive results in solving the festering eurozone debt crisis,” Charles Schwab analysts said.
Analysts said there remained many questions over the deal in last Friday’s European Union summit in which 26 of 27 EU countries — Britain dissented — backed tougher fiscal limits in the future.
