Concern about Cyprus last week pushed U.S. stock indexes to only their second weekly loss this year. Investors watched closely as the small, Mediterranean island scrambled to satisfy its lenders and prevent its banks from collapsing.
Traders expect more turbulence from Europe before the crisis has been resolved, said Anthony Conroy, head trader at ConvergEx Group, which provides technology to support big traders like investment advisers and hedge funds. Given the uncertainty, it's not surprising that stocks would veer between positive and negative, he said.
"When you have concern, you have volatility, and you're seeing volatility in here," Conroy said.
European stocks were up when Wall Street opened Monday, but turned lower shortly after Wall Street's gains evaporated. France's CAC-40 closed down 1.1 percent, London's FTSE 100 fell 0.2 percent and Germany's DAX lost 0.5 percent.Earlier, Asian stocks closed mostly higher on optimism about the Cyprus deal. The S&P 500 closed down 5.2 points at 1,551.69. The loss was offset in part by big jumps for Apollo Group Inc. and McGraw-Hill Cos. Computer maker Dell Inc. also supported the index as a bidding war broke out among investors who want to take the company private. The Dow fell 64.28 points to 14,447.75. The Nasdaq dropped 9.7 to 3,235.30. As the final week of trading this quarter kicks off, the indexes are holding onto most of the gains built during the long rally earlier this month. The Dow is up 10 percent, the S&P 500 nearly nine percent. Conroy expects stocks to maintain their recent gains as short-term dips draw more traders into the market. Kelly agreed, noting that stocks typically decline in the last week of a strong quarter, as investors seek to lock in their gains. Among the companies making big moves: â¿¿ Apollo Group soared after the for-profit education company said its quarterly net income exceeded Wall Street's expectations. The stock rose $1.21, or 7.1 percent, to $18.25.