May 18, 2012-Markets Close Lower on Euro Debt Concerns

After showing a lack of direction in morning trading on Friday, stocks showed another notable move to the downside over the course of the afternoon. The pullback by the markets came as traders were reluctant to hold positions going into the weekend. The major averages all ended the day firmly in negative territory, at their worst closing levels in four months. The fell 73.11 points or 0.6 percent to 12,369.38, the Nasdaq plunged 34.90 points or 1.2 percent to 2,778.79 and the S&P 500 slid 9.64 points or 0.7 percent to 1,295.22. With the losses on the day, the major averages all fell sharply for the week. The Dow dropped by 3.5 percent, while the Nasdaq and the S&P 500 tumbled by 5.3 percent and 4.3 percent, respectively. The continued weakness on Wall Street came despite a lack of major catalysts, with the drop reflecting the recent downward momentum for the markets. Lingering concerns about the financial situation in Europe continued to weigh on the markets, with the ongoing political uncertainty in Greece adding to worries about the outlook for the eurozone. However, a note from Capital Economics said, "All things considered, we don't expect Greece's eventual exit from the euro-zone to have any devastating impact on the US economy, even if the exit from the single currency is compounded by a Greek banking collapse and/or a further sovereign debt default."