Stocks end moderately lower after China's plunge
Stocks fell slightly on Wall Street Thursday as global markets came under pressure with a deadline for a Greek debt payment looming and a sharp sell-off in Chinese stocks.
The Dow Jones industrial average lost 0.2%, finishing down 37 points to 18,126.12. The blue-chip index fell for a fourth day out of the past six trading sessions.
The Standard & Poor's 500 index dropped 0.1%, down 3 points to 2120.79. The Nasdaq composite index fell 0.2%, losing 9 points to end at 5097.98. The tech-heavy index pulled back from its record closing high of 5106.59, posted in the previous session.
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A major deal in the tech industry did little to boost investor sentiment as chipmaker Avago Technologies (AVGO) agreed to buy rival Broadcom (BRCM) for $37 billion.
Shares of Broadcom fell 1.8% after rocketing 21% on Wednesday amid reports the deal was imminent. Avago gained 0.6%.
Overseas, China's Shanghai Composite plunged 6.5% on disclosures that sovereign-wealth fund Central Huijin Investment was selling shares of two state-owned banks, The Wall Street Journal reported.
Hong Kong's Hang Seng index dropped 2.2% but Japan's Nikkei index bucked the trend and rose 0.4% as a cheap yen kept the upswing in Tokyo shares going.
WHAT HAPPENED:The story behind China's 6.5% stock plunge
European shares were mixed Thursday as traders continue to get mixed messages about the progress of talks between Greece and its creditors.
Germany's DAX index dropped 0.8% and France's CAC 40 fell 0.9%. Britain's FTSE 100 was up 0.1%.
Reports from Greece on Wednesday that a deal was near caused a market rally, but the optimism proved short-lived as key creditor states, like Germany, quickly warned that a final agreement remained elusive.
Greece might miss a debt payment on June 5 if it fails to receive bailout funds from creditors, who are demanding that the country make reforms to its economy.
Government spokesman Gabriel Sakellaridis told reporters at a briefing on Thursday that the country aims to have a deal with creditors by Sunday to get more rescue loans.
Wednesday, U.S. stocks rallied as the Nasdaq composite leaped to a new closing high ans the Dow jumped more than 120 points.
Contributing: Associated Press