The markets spent the entire week following the news from Greece—and as the Greek government and European officials struggled to reach a deal, U.S. markets turned in a sub-par performance. As a result, the Dow stands at just +0.7% for the year, with Tuesday marking the halfway point of 2015!
Monday the market started off with a rally, as investors cheered the possibility of a solution to the Greek debt crisis. This same scenario has happened no less than 4-5 times this month… and again, those gains were cut in half as the day wore on, and no formal agreement was reached. The early rally was enough to move the Dow up by 103 points for the day.
Tuesday was another day with no formal agreement on the Greece crisis, and that was reflected, as the market rally slowed. Additional data showed an uptick in new home purchases, but durable goods purchases were lower than expected. The market moved up slightly, with the Dow gaining 24 points for the day.
Wednesday started with a double dose of bad news—Greece’s prime minister, Alexis Tsipras, expressed frustration with negotiations for a bailout, while the U.S. 1st-quarter GDP was finalized at -0.2%. The markets dropped early and never recovered. The Dow registered its worst day in June, dropping 180 points.
Thursday those struggles continued, with no Greek resolution in sight. In the words of one expert, the markets were being “held hostage” until there is a resolution. In the meantime, investors’ concerns continued as the Dow dropped another 75 points.
Friday stocks jumped on a positive consumer sentiment reading that exceeded expectations. But due to the continued lack of a settlement in Greece, the rally was less than what would normally be seen off positive data. By the end of the day, the Dow had gained 56 points.