US STOCKS-Wall St falls as Greek crisis worsens
(Updates to open, adds quote)
By Sweta Singh
June 29 (Reuters) - U.S. shares fell in early trading on Monday, with all Dow stocks opening down, after Greek bailout talks collapsed, intensifying fears that it could be the first country to exit the euro zone.
The S&P 500 and the Nasdaq Composite fell around 0.7 percent as markets around the world slumped on fears that other European countries would suffer if Greece defaults.
The European Central Bank froze funding to Greek banks, forcing Athens to shut banks for a week to keep them from collapsing.
"A week ago, it seemed very likely that we were close to having a resolution, and now all of a sudden we're waking up to capital controls?" said Leo Grohowski, who oversees about $194 billion in client assets as chief investment officer at BNY Mellon Wealth Management in New York.
"I'm not confident that today reflects all the bad news that could happen. Investors are really bumping up the odds that Greece will exit the euro," Grohowski said.
Trading was volatile, with the CBOE Volatility index spiking 16 percent to 16.27. While the so-called "fear index" remains below its historical average of 20, it is at its highest since early May.
S&P 500 index futures fell nearly 2 percent in premarket trading, though indexes pared their losses in early trading after a Greek government official said some banks would open on Thursday for the payment of pensions. Continuación...