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Greek stocks tumble on eurozone woes

March 27, 2013: 12:41 PM ET
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While U.S. stocks have taken a pause from the recent rally, Greek stocks have tumbled sharply as Europe's woes are back in the limelight.

It's been a week of ups and downs in the U.S. stock market, as investors have been watching developments in Europe while digesting mostly positive news in the United States.

With all eyes focused on Cyprus, U.S. stocks have taken a pause from the rally that has been underway since early November. The Dow has been bouncing around 14,500 while the S&P 500 has been drifting between 1,550 and 1,560, just below its all-time high from October 2007.

After falling on Monday and rebounding on Tuesday, all three major U.S. indexes were back in the red Wednesday as banks in Cyprus are set to open their doors Thursday for the first time since March 16. Worries about Cyprus have reignited fears about other troubled countries in the eurozone, including Greece, Spain and Italy.

The Athens stock exchange tumbled 4% Wednesday, while Spanish and Italian stocks dropped about 1%.

The pressure in the markets gave Stocktwits users plenty to chatter about.

So the Greek stock market is officially crashing? This constitutes a crash right? down over 25% since last month? si o no?

It's certainly a sharp pullback. But of course, Greece's stock market is up more than 80% from its low in June 2012.

World is ending OMG. Yest 'off to the moon'. Pick a sentiment peeps. $SPY

Investors have been flip-flopping lately. CNNMoney's Fear & Greed index ticked down 8 points overnight, showing that investors are now in 'Greed' mode, compared to 'Extreme Greed' earlier this week.

$SPY down .58%. Panic in the streets. Investors seeking safety in security stock $ADT.

That's a good point. While stocks have taken a breather from the rally, they're not even close to down and out. But even though investors aren't really seeking safety in ADT Corp., they are continuing to pad their portfolios with Treasuries. The yield on the 10-year Treasury has fallen to 1.86% from almost 2% a week ago.

$SPY U.S. is the best market in the world. If you HAVE to be long, where else are you going to put your money.

That's fair. Experts continue to make the point that even though the U.S. economy is still struggling with high unemployment, sluggish growth and a dysfunctional government, it has benefited from the Federal Reserve's stimulus policies over the last few years, and it's in much better shape than other countries.

And as long as that continues, the U.S. stock market stands to benefit, said Gary Thayer, chief macro strategist at Wells Fargo Advisors. He emphasized that  even during the past few weeks, the U.S. stock market has held up better than many of its foreign counterparts, particularly emerging markets.

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About This Author
Hibah Yousuf
Hibah Yousuf
Reporter, CNNMoney

Hibah Yousuf is a reporter at CNNMoney, where she covers stocks, bonds, commodities and currencies trading across the globe, as well as corporate earnings and other markets-related news. Prior to joining the site in 2009, she interned at Money Magazine.

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