June 23 (Bloomberg) -- U.S. stocks pared losses following a report that Greece had reached an agreement with the European Union and International Monetary Fund regarding a five-year austerity plan.
The Standard & Poor’s 500 Index slipped 0.9 percent to 1,275.08 at 3:06 p.m. in New York after tumbling as much as 1.9 percent earlier. The Dow Jones Indutrial Average fell 131.35 points, or 1.1 percent, to 11,978.32. Reuters reported that the Greek government had reached the agreement with the IMF and EU, citing sources.
“So yes the market is rallying on only a headline and not a full story,” said Peter Boockvar, equity strategist at Miller Tabak & Co. in New York, in a note to clients. “There is already an austerity plan that the Greek parliament is voting on next week so the only thing that could be different is if the terms have been changed to make it easier for the Greek government to pass. Again, it’s just a headline that doesn’t fully make sense since a plan is already being voted on next week.”
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