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U.S. stocks slip as Greece scrambles to avoid cash crunch

A man carries a U.S. flag outside of

A man carries a U.S. flag outside of the New York Stock Exchange during July Fourth celebrations on July 4, 2015 in Manhattan. Credit: Getty Images / Eduardo Munoz Alvarez

Stock prices in the United States slid Monday afternoon, recovering slightly by the close of trading, as Greece scrambled to avoid a cash crunch and energy shares tumbled with the price of oil.

U.S. markets followed those in Europe and Asia in reacting to a referendum in Greece which refused the austerity plans of its creditors. The onus now is on Greece to act quickly to avoid a meltdown of its banks, which the government said will now remain shut through Wednesday. German Chancellor Angela Merkel and French President Francois Hollande are due to meet other eurozone leaders Tuesday.

At the close on Wall Street, The Dow Jones industrial average was down 46.53 points, about 0.3 percent, at 17,683.6. The Standard & Poor's 500 index gave up 8 points, about 0.4 percent, to 2,068.8. The Nasdaq composite fell 17.3 points, about 0.3 percent, to 4,992.

As U.S. markets closed, the Aug. 15 contract for U.S. benchmark crude oil was down $4.17 at $52.72 a barrel on the New York Mercantile Exchange.

The market declines Monday were not as bad as many had feared, something analysts are crediting to the resignation of the Greek finance minister, which might help bailout talks resume. The International Monetary Fund has also pledged to help the country if asked.

In Europe, Germany's DAX fell 1.5 percent while the CAC-40 in France fell 2 percent. The FTSE 100 index of leading British shares was 0.8 percent lower. There was little evidence Greece's troubles might affect other eurozone countries imminently. Government borrowing rates for Italy and Spain rose only marginally.

In Asia at the end of trading, Japan's Nikkei 225 and South Korea's Kospi each dropped more than 2 percent. Hong Kong's Hang Seng sank 3.2 percent.

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