NEW YORK (TheStreet) -- Stocks plumbed new lows by mid-afternoon Thursday after the International Monetary Fund agreed to allow Greece to repay its debt later this month.
The S&P 500 was down 0.83%, the Dow Jones Industrial Average fell 0.93% and the Nasdaq slid 0.88%.
Greece will miss its repayment due Friday of 303.3 million euros to the IMF and instead repay its four debt obligations in a lump sum at the end of the month. This will allow the debt-ravaged country more time in which to negotiate for extra debt relief from its European creditors. Greece needs to repay the IMF nearly 1.6 billion euros ($1.75 billion) this month.
The IMF said Thursday the Federal Reserve should wait until there are stronger signs of wage or price inflation in its annual review of the U.S. economy. The body forecasts that will likely happen in the first half of 2016. The Fed is widely expected to raise rates from near-zero crises levels in September.
"Based on the mission's macroeconomic forecast, and barring upside surprises to growth and inflation, this would put lift-off into the first half of 2016," the IMF said in its report.
Fed Governor Daniel Tarullo raised doubts over whether it would be appropriate to raise rates this year. he U.S. economy appeared to have "lost some momentum" and that it may not recover as quickly from a first-quarter slowdown as expected, Tarullo said at a conference in New York.
The Organization of Petroleum Exporting Countries will meet in Vienna on Friday to discuss current production levels and expectations for the global oil market which has seen prices plummet since last July. Economists widely expect members to keep production levels at record highs. West Texas Intermediate crude closed down 2.8% to $58 a barrel.