After moving sharply lower in early trading on Monday, stocks have seen continued weakness over the course of the morning. The major averages have remained stuck firmly in negative territory, extending a recent downward trend.
Much of the weakness on Wall Street stems from lingering concerns about the political uncertainty in Greece, with the debt-plagued nation 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.
Worries about the outlook for the Chinese economy are also weighing on the markets, with resource stocks seeing substantial weakness amid concerns about the outlook for global demand.
Oil service stocks continue to turn in some of the market's worst performances amid a sharp drop by the price of crude oil. With crude for June delivery tumbling $1.72 to $94.41 a barrel, the Philadelphia Oil Service Index is down by 2.2 percent.
Significant weakness is also visible among financial stocks, as traders continue to worry about JP Morgan's (JPM) revelation of a $2 billion trading loss.
Most of the other major sectors have also moved to the downside on the day, with housing, chemical, and healthcare provider stocks seeing notable weakness.
The major averages have climbed off their worst levels of the day in recent trading but continue to post steep losses. The Dow is down 114.66 points or 0.9 percent at 12,705.94, the Nasdaq is down 24.12 points or 0.8 percent at 2,909.70 and the S&P 500 is down 12.90 points or 1 percent at 1,340.49.
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