US rally broken by cancelled euro summit

US stocks fell yesterday on doubts European leaders can agree on a plan to end the Eurozone debt crisis, while major corporations disappointed investors with their outlooks.

Though EU and Eurozone leaders still planned to hold a summit today, markets were spooked by news that a meeting by Eurozone finance ministers was cancelled.

The news fed fears that leaders will be unable to come up with the detailed plan for ending the crisis that investors want.

“That alone has added a big wave of disappointment to today’s market.”

The S&P 500 has rallied nearly nine per cent for the month on optimism European leaders will succeed in tackling the region’s debt crisis.

Yesterday the Dow Jones industrial average lost 205.18 points, or 1.72 per cent, to 11,708.44. The Standard & Poor’s 500 Index fell 24.96 points, or 1.99 per cent, to 1,229.23. The Nasdaq Composite Index dropped 61.02 points, or 2.26 per cent, to 2,638.42. After hours, Amazon slumped 15 per cent on weak results.