Investing.com - U.S. stocks traded lower Wednesday as several big-name technology companies failed to meet earnings expectations and Spanish debt fears continue to weigh on worldwide equity markets.
At the close of U.S. trade, the Dow Jones Industrial Average fell 0.63%, the S&P 500 dropped 0.41%, while the Nasdaq Composite gave back 0.37%.
The equity selling pressure started as investors dumped shares prior to Thursday’s critical auction of two and 10-year Spanish government bonds, amid uncertainty over whether the government will be able to reduce one of the euro zone’s largest budget deficits in the face of a looming recession.
However, equity market sentiment was boosted Tuesday after an auction of short-term Spanish government debt raised the full targeted amount of EUR3 billion, but the country’s borrowing costs almost doubled.
Meanwhile, concerns over Spain’s troubled banking sector mounted after the country’s central bank reported that the amount of bad loans at domestic banks rose to an 18-year high in February.
Pressure on equities continued as concerns over Portugal’s economic health intensified after Prime Minister Pedro Passos Coelho said Wednesday there were "no guarantees" that the country would meet its commitment to return to the international capital markets before September 2013.
In other news, Germany auctioned EUR4.21 billion of two-year government bonds at a record low yield of 0.14%, as investor demand for safe haven assets remained well supported.
High tech kingpins Intel and IBM both reported the slowest sales growth since 2009 sending shares lower by at least 1.5%.
Investment legend, Warren Buffett, was diagnosed with early stage prostate cancer sending shares of Berkshire Hathaway down 1.3%.
Genworth Financial tumbled 21% upon delaying plans for a public offering of its Australian unit backing home.
At the close of European trade, the EURO STOXX 50 gave back 1.66%, France's CAC 40 fell 1.59%, while Germany’s DAX dropped 1.01%. Meanwhile, in the U.K. the FTSE 100 slipped 0.38%.
Traders are anticipating U.S. initial jobless claim and existing home sales as well as the hotly anticipated Spanish bond auction on Thursday.
At the close of U.S. trade, the Dow Jones Industrial Average fell 0.63%, the S&P 500 dropped 0.41%, while the Nasdaq Composite gave back 0.37%.
The equity selling pressure started as investors dumped shares prior to Thursday’s critical auction of two and 10-year Spanish government bonds, amid uncertainty over whether the government will be able to reduce one of the euro zone’s largest budget deficits in the face of a looming recession.
However, equity market sentiment was boosted Tuesday after an auction of short-term Spanish government debt raised the full targeted amount of EUR3 billion, but the country’s borrowing costs almost doubled.
Meanwhile, concerns over Spain’s troubled banking sector mounted after the country’s central bank reported that the amount of bad loans at domestic banks rose to an 18-year high in February.
Pressure on equities continued as concerns over Portugal’s economic health intensified after Prime Minister Pedro Passos Coelho said Wednesday there were "no guarantees" that the country would meet its commitment to return to the international capital markets before September 2013.
In other news, Germany auctioned EUR4.21 billion of two-year government bonds at a record low yield of 0.14%, as investor demand for safe haven assets remained well supported.
High tech kingpins Intel and IBM both reported the slowest sales growth since 2009 sending shares lower by at least 1.5%.
Investment legend, Warren Buffett, was diagnosed with early stage prostate cancer sending shares of Berkshire Hathaway down 1.3%.
Genworth Financial tumbled 21% upon delaying plans for a public offering of its Australian unit backing home.
At the close of European trade, the EURO STOXX 50 gave back 1.66%, France's CAC 40 fell 1.59%, while Germany’s DAX dropped 1.01%. Meanwhile, in the U.K. the FTSE 100 slipped 0.38%.
Traders are anticipating U.S. initial jobless claim and existing home sales as well as the hotly anticipated Spanish bond auction on Thursday.