On resumption of trading on the New York Stock Exchange (NYSE) after a halt of three hours, the U.S. stocks were down by over 1% in the afternoon more due to the turmoil in the Chinese market than the Greece’s debt crisis. The release of minutes of a June Federal Reserve policy meeting revealed maintenance of losses by the Wall Street. During the meeting serious concerns were expressed over the deepening debt crisis of Greece. The U.S. officials were of the view that interest rate should be raised only after more signs of strengthening of the U.S. economy came out.
A unit of the International Exchange Inc, the NYSE, remained suspended for around three hours due to a technical snag, and resumed operations at 3.10 pm EDT. The slide in the Chinese market gave rise to concerns about its impact on global economic growth. All ten major S&P sectors were declining with energy index dropping by 1.9%. With the Chinese shares falling by over 30% during the preceding three weeks, experts and investors were of the view that the turmoil in Chinese market posed a bigger risk than the Greece crisis. The China selloff went on unabated even while People’s Bank of China tried hard to contain it. The industrial average of Dow Jones fell by 207.6 points, and was reduced to 17569.31, the Nasdaq Composite by 76.58 points, and the S&P by 28.19 points.
The NYSE suspension followed the grounding of flights by United Airlines due to computer problems. The share of the United Airlines was down by 1.9%. The Chinese slowdown would continue to pose problems for especially the industrial and materials companies of the U.S. as these companies derive a large chunk of their profits from that region. The declining issues far outnumbered the advancing ones in the NYSE more due to the Chinese slide than the Greek crisis.