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Speculation that the US Federal Reserve is preparing a package to stimulate the economy in the country was not sufficient to encourage traders as the spectre of the debt crisis in Europe continued to loom.
Malcolm Polley, chief investment officer at Stewart Capital, told Bloomberg: "There's fear of a spiral downward to a really bad situation in Europe."
Yesterday it emerged that Greece will fail to qualify for more financial aid, news that prompted a number of stock markets to decline.
The S&P 500 dropped 0.2 per cent to close at 1,202.09 points at 16:00 local time in New York, while the Dow Jones Industrial Average only increased by 0.1 per cent to finish at 11,408,66.
On September 19th, the S&P 500 had shed 2.2 per cent at 10:17 local time, Bloomberg reported, marking the end of its longest rally since July.
Posted by Greg Secker
