Stocks remain mostly negative in mid-day trading on Monday, although selling pressure has waned from earlier in the session. Concerns about the latest developments overseas continue to weigh on the markets.
The major averages have climbed well off their worst levels of the day but remain firmly in negative territory. The Dow is down 96.83 points or 0.8 percent at 12,723.77, the Nasdaq is down 17.79 points or 0.6 percent at 2,916.03 and the S&P 500 is down 10.26 points or 0.8 percent at 1,343.13.
Much of the weakness on Wall Street stems from lingering concerns about the political uncertainty in Greece, as the debt-plagued nation seems likely to be forced to hold a new round of elections due to lawmakers' inability to form a coalition government.
Peter Boockvar, managing director at Miller Tabak, noted that another Greek election would basically being an up or down vote on the country's Euro membership.
"The growing possibility of Greece saying bye bye has put the entire region into the realm of the unknown in terms of the economic ripple effects," Boockvar said.
Traders are also keeping a close eye on developments in China, where the central bank announced over the weekend that it would lower the reserve requirement for banks by 50 basis points in a bid to inject more liquidity into the system.
The move has added to recent concerns about the outlook for growth in China, which represents the world's second largest economy behind the U.S.
In corporate news, shares of Yahoo (YHOO) are bucking the downtrend by the broader markets after the online media giant announced the resignation of CEO Scott Thompson, who left the company over a resume padding scandal.
The company named Ross Levinsohn as interim CEO. Yahoo also said Fred Amoroso has been named Chairman of the Board of Directors, replacing Roy Bostock.
Sector News
With traders worried about the outlook for global demand, steel stocks are seeing substantial weakness in mid-day trading. The NYSE Arca Steel Index is down by 2 percent after hitting a nearly five-month intraday low.
Mechel (MTL) and Ternium (TX) are turning in two of the steel sector's worst performances, falling by 5.7 percent and 3.9 percent, respectively.
Oil service stocks also continue to see considerable weakness amid a sharp drop by the price of crude oil. With crude for June delivery tumbling $1.53 to $94.60 a barrel, the Philadelphia Oil Service Index is down by 1.9 percent.
Significant weakness also remains visible among financial stocks, as traders continue to worry about JP Morgan's (JPM) revelation of a $2 billion trading loss.
Gold, healthcare provider, housing, and chemical stocks are also posting notable losses, moving to the downside along with most of the major sectors.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance on Monday. Japan's Nikkei 225 Index crept up by 0.2 percent, while Hong Kong's Hang Seng Index ended the day down by 1.2 percent.
Meanwhile, the major European markets all saw significant weakness on the day. While the French CAC 40 Index plunged by 2.3 percent, the U.K.'s FTSE 100 Index and the German DAX Index tumbled by 2 percent and 1.9 percent, respectively.
In the bond market, treasuries have shown a strong upward move amid the weakness among stocks. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 6.5 basis points at 1.776 percent.
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Market Analysis
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.