© Dukascopy Bank
|
"Most people come to the conclusion that downgrades on the region's sovereigns are easily justifiable"
- Nick Sargen, chief investment officer at Fort Washington Investment Advisors
U.S. stocks closed lower on Monday after Moody's Investors Service said it will still review ratings of EU member countries in the first months of 2012, despite EU agreement on deeper fiscal union.
The Dow Jones Industrial Average fell 1.34 percent, or 162.87points, to 12,021.40, the Standard & Poor's 500 Index lost 1.49 percent, 18.72 points, to 1,236.47 and the Nasdaq Composite dropped 1.31 percent, or 34.59 points, to 2,612.26.
"The big issue is: Did the European summit do enough to stave off these downgrades or not?" said Nick Sargen, chief investment officer at Fort Washington Investment Advisors in Cincinnati.
"Most people come to the conclusion that downgrades on the region's sovereigns are easily justifiable. If the rest of the world is slowing down, we too would feel some of that impact."