Digital News Report – Stock markets closed lower on Friday as the Dow fell more than 300 points.
Traders were concerned that the Greek government would default on their sovereign debt. Last week there were reports that Greece was not making the proposed government cuts in order to meet the European Central Bank (ECB) loan requirements. Later this month the ECB will consider an €8 billion loan.
The European sovereign debt crisis may have been responsible for driving stocks down in the United States again. On Thursday night President Barack Obama laid-out plans for $450 billion in stimulus and tax cuts. Stock prices still declined on Friday.
The Dow Jones Industrial Average index fell 303.68 points (-2.69%) to 10,992.13. The S&P 500 was down 31.67 (-2.67%) to 1,154.23. Tech stocks didn’t fare any better; the Nasdaq composite index was down 61.15 (-2.42%) to 2,467.99.
Some of the more active tech stocks were Apple Inc (NASDAQ), Microsoft Corp (NASDAQ) and Cisco Systems Inc (NASDAQ). All were lower. Apple was down 6.66 (-1.73%) to $377.48, while Microsoft was down 0.48 (-1.83%) to $25.74 and Cicsco was down 0.47 (-2.89%) to $15.82.
On Sunday the Greek media is reporting that government officials are discussing new taxes in order to meet new deficit reductions. Greek Prime Minister George Papandreou will be holding a press conference later in the day. There are reports of riots in Greece.
By: Tim Edwards