There was a tough scenario in the US stock market when it collapsed because of unresolved Greek crises. There was a great fear of how soon the Federal Reserve raises the interest rates. The energy index was also down by 1.3 percent.
The International Monetary Fund failed to enter into bailout talks with Greece. However, the EU officials claimed that they finished the first round of discussion for the country’s worst case scenario.
Janna Sampson, co-chief investment officer at OakBrook Investments LLC in Lisle, Illinois said, “You have to question whether they’re looking at reality. If the IMF sends their negotiators home and the rest of the EU is talking like this isn’t happening, it may be political rhetoric aimed at the Greek citizens.”
The industrial average of Dow Jones fell down by 154.65 points at 2:32 p.m. S&P also lost 15.65 points and the Nasdaq Composite dropped down by 30.93 points. The consumer sentiment of the US raked up in early June. The upbeat report has made sure that the growth is taking momentum after a slow start in the second quarter.
The interest rates have gone up and it will squeeze the flow of easy money which has caused the stocks and bond prices to skyrocket. The borrowing cost of the companies has raised because of it. Various economists and the banks in Wall Street are expecting that Fed would raise its rates in September which could be the first raise in central bank in the last 10 years.
The shares of Twitter Inc. went up by 0.2 percent at $35.90. This was the result of the announcement of the CEO Dick Costolo to step down from his position in the company.
The International Monetary Fund is still in talks with the government of Greece and some better output is expected from the second round of discussion.