NEW YORK: Stocks declined Monday, erasing gains that briefly had the S&P 500 index less than one point from its record close, as Wall Street worried about Europe’s troubles.
Stocks had initially rallied as a deal was reached to avert a financial meltdown in Cyprus. But equities retreated as investors questioned what the plan for bank restructuring in the island nation would mean for other European countries.
“The initial euphoria was Cyprus at least didn’t sink into the Mediterranean Sea. But, as you dive in further, you realize Europe still does have significant issues to resolve,” said Ron Florance of Wells Fargo Private Bank.
After coming within a fraction of its all-time closing high of 1,565.15, hit in October 2007, the S&P 500 ended at 1,551.69, off 5.20 points, or 0.3 percent on Monday.
Industrials and materials were the worst performing of the S&P’s 10 major sectors, all of which lost ground.
Dell Inc. shares gained 2.6 percent after the computer maker confirmed it received competing bids from private-equity firm Blackstone Group LP and billionaire investor Carl Icahn.
After rising 51 and then falling 117 points, the Dow Jones industrial average declined 64.28 points to 14,447.75. The Nasdaq Composite dropped 9.70 points to 3,235.30.
The euro fell, along with U.S. and European equities, after Dutch Finance Minister Jeroen Dijsselbloem suggested the most controversial aspect of the Cyprus rescue could be repeated among others in the 17-member euro zone. His office later dialed back his comments.