U.S. stock gains evaporated on Monday, as investors looked beyond Spain’s request for financial aid for its banks to what lies ahead, including elections in Greece.
“We expect both stock and bond market volatility to remain high this week as we approach the Greek election next Sunday,” Fred Dickson, chief investment strategist at Davidson Cos., said in emailed research.
The Dow Jones Industrial Average DJIA -0.19% fell 33.76 points, or 0.3%, to 12,520.44.
The S&P 500 Index SPX -0.10% declined 2.86 points, or 0.2%, to 1,322.80, with natural-resource and financial companies leading the losses.
The Nasdaq Composite COMP -0.14% slipped 7.8 points, or 0.3%, to 2,850.64.
Decliners edged past advancers on the New York Stock Exchange, where 198 million shares traded.
During the weekend, Spain asked for as much as 100 billion euros of European rescue funds for its stricken banking sector. The prospect of Greece exiting the euro after elections June 17.
“While this aid has little chance of stimulating Spain’s deeply recessionary economy, it does reduce the threat of a new wave of financial contagion emanating from the euro-zone debt crisis,” David Kelly, chief global strategist at J.P. Morgan Funds, in emailed research.
“However, a more important hurdle to financial stability will come with next Sunday’s Greek election,” Kelly added.
