Stocks closed lower due to light trading Wednesday as the S&P 500 posted its fifth straight decline. Investors were still concerned about the financial crisis in the euro zone. The Dow Jones Industrial Average also declined for the fourth day in a row as it dropped 0.33 percent to close at 13,413.51.
The S&P 500 dropped 8.27 points or 0.57 percent to close at 1,433.32. The Nasdaq also dropped 24.03 points or 0.77 percent to close at 3,093.70. The CBOE Volatility Index, which is considered by the industry as the best barometer of fear in the market, soared near 17. Energy and techs led the major lag among the S&P sectors. Only utilities managed to close at a gain.
European shares were the major losers in the market and this might be due to the violent anti-austerity protests in Spain and Greece. Yields on the 10 year Spanish bonds went up above 6 percent. This happened just when investors though that the euro zone debt problems were already fixed.
The euro went down to a two week low against the US dollar. Oil dropped below $90 per barrel for the first time since August 3. Gold was also slightly affected as it dropped more than 1 percent. Spain’s leaders are still undecided as to whether to ask for a full-blast bailout or not, while protesters go out to the street.
Apple dropped for the third session in a row to close at $665 per share. Google closed at an all-time high. Baird and Canaccord Genuity both increased their price target on the online search giant to $750 and $850, respectively.
Research in Motion still on a upward trend after the BlackBerry manufacturer announced its better-than-expected subscriber numbers. It also said that it will release a new smartphone early next year.