Jittery Investors Watch Greece, US Economic Data

SCOTT MAYEROWITZ

NEW YORK (AP) — For the past six weeks, Wall Street traders have optimistically pushed the Dow Jones industrial average up nearly 4.8 percent on a belief that the U.S. economic recovery is finally gaining momentum.

On Monday, that cheerfulness will be put to the test as investors balance good news at home with lingering fears over the stability of Europe.

After three days of rioting, the Greek parliament early Monday morning approved a new set of austerity measures that are likely to cause much pain for its already-struggling citizens. The measures clear the way for the nation to reduce its debt and are a crucial step needed for the country to gain another bailout from the other European nations and the International Monetary Fund.

As a new week of trading starts, investors are worried that things in Europe can still unravel given the Greek's history of reneging on promises of fiscal responsibility. And the recent optimism over the U.S. recovery is still fragile enough to be undone by just a few bad economic indicators.

Traders' jitters were evident Friday after Greeks took to the streets in protest of the then proposed cuts including a 22-percent drop in the minimum wage and the elimination of one in five civil service jobs. This comes with the unemployment rate over 20 percent and the economy in the fifth year of a recession. Riots and fires continued all throughout the weekend.

The unrest and calls from some European officials for even stricter austerity measures caused widespread selling by investors Friday. The Dow closed down 89 points, or 0.7 percent. It was the worst day of the year for the market.

Even as the measures pass, Wall Street must still ask itself if the worst of Europe's troubles are over or if the crisis has just been temporarily delayed. Attention now shifts to a meeting Wednesday of European finance ministers, who will discuss additional bailout funds for Greece.