New York :US stocks retreated early Tuesday, following European markets lower as political turmoil in Italy and Spain accentuated worries about the eurozone.
About 10 minutes into trading, the Dow Jones Industrial Average had dropped 0.8 percent to 24,549.50.
The broad-based S&P 500 shed 0.7 percent to 2,701.38, while the tech-rich Nasdaq Composite Index lost 0.5 percent to 7,395.74.
Italian President Sergio Mattarella on Monday blocked a cabinet proposed by the anti-immigrant League and their allies in the Five Star Movement, heightening uncertainty about governance in the eurozone’s third largest economy.
In Spain, Prime Minister Mariano Rajoy faces a no-confidence vote later this week, raising additional doubts about the trading bloc.
“These developments have fueled risk-off trading behavior in Europe that has carried over to global markets, which have also had to contend with the ongoing uncertainty surrounding trade matters, diplomatic dealings with North Korea, and brewing challenges for emerging markets due to the strengthening dollar,” said Briefing.com analyst Patrick O’Hare.
With US markets reopening after the Memorial Day holiday, investors are expected to focus on key data releases this week, including the May reading on consumer confidence later Tuesday and Friday’s monthly jobs report.
