After turning in a strong performance in the previous session, stocks showed a substantial move back to the downside during trading on Wednesday. Renewed concerns about the financial situation in Europe contributed to the sharp pullback by the markets.
While significant weakness was visible in most major sectors, housing stocks posted particularly steep losses following disappointing pending home sales data. The Philadelphia Housing Sector Index plunged 4.1 percent after closing higher in five out of the six previous sessions.
Oil service stocks also showed a substantial move to the downside amid a sharp drop by the price of crude oil. With crude for July delivery tumbling $2.94 to $87.82 a barrel, the Philadelphia Oil Service Index dove 3.9 percent.
After helping to lead the markets higher on Tuesday, steel stocks also saw considerable weakness on the day, resulting in a 3.2 percent loss by the NYSE Arca Steel Index.
Natural gas, electronic storage, banking, and railroad stocks also posted standout losses, reflecting the broad based weakness in the markets.
The major averages posted steep losses on the day, offsetting Tuesday's gains. The Dow fell 160.83 points or 1.3 percent to 12,419.86, the Nasdaq dropped 33.63 points or 1.2 percent to 2,837.36 and the S&P 500 slid 19.10 points or 1.4 percent to 1,313.32.
by RTT Staff Writer
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