NEW YORK: US stocks recovered from a sharp opening fall sparked by a Portugal bank scare and general investor caution to end with modest losses Thursday.
After the initial reaction, traders appeared to discount the potential impact of problems in Lisbon-based Banco Espirito Santo, which sent shudders through European financial markets.
At the closing bell, the Dow Jones Industrial Average was down 70.41 points (0.41 percent) at 16,915.20.
The broad-based S&P 500 slumped 8.14 (0.41 percent) to 1,964.69, while the tech-rich NASDAQ Composite Index slid 22.83 (0.52 percent) to 4,396.20.
Earlier losses for the S&P were nearly one percent.
“Portugal was certainly an issue… the news that there is a concern about a missed payment by the country’s second-largest lender certainly created a lot of volatility,” said Alan Skrainka of Cornerstone Wealth Management.
“It shows there is a lot of nervousness,” after US markets hit record highs last week, he said, calling the news “an excuse for the stock market to sell off.”