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RICHARD DREW

Stocks were hit hard on Wednesday amid renewed concerns about Greece's ability to meet its debt obligations, dashing hopes that Tuesday's rebound would continue and sending the S&P 500 to a three-month low.

The Dow Jones industrial average closed at 11,897.27, down 178.84 points or 1.5 per cent. The broader S&P 500 closed at 1265.42, down 22.45 points or 1.7 per cent. In Canada, the S&P/TSX composite index closed at 12,972.03, down 125.79 points or 1 per cent.

The declines were broad, with all 30 stocks within the Dow ending lower. But economically sensitive stocks took the worst drubbing as investors mull ongoing concerns about the health of the U.S. economy and fears that a Greek debt default could have wide implications. Alcoa Inc. fell 2.9 per cent, Bank of America Corp. fell 2.8 per cent and Home Depot Inc. fell 2.5 per cent.

Energy stocks also fell sharply after the price of crude oil dropped to $94.81 (U.S.) a barrel, down $4.56 and taking it to its lowest level since February. Chevron Corp. fell 2.2 per cent, Suncor Energy Inc. fell 2.7 per cent and Canadian Oil Sands Ltd. fell 2.5 per cent.

The Canadian dollar fell against the U.S. dollar, to $1.02, down 1.1 cents. Gold rose slightly, to $1,526.20 an ounce, up $1.80. U.S. Treasury bonds were also popular during the mayhem, with the yield on the 10-year bond falling below 3 per cent. Yields fall as bond prices rise.

The CBOE VIX volatility index, widely seen as a gauge of investor fears, shot up to 21.4, a gain of 17.3 per cent. That's its highest level since mid-March, when Japan was hit by the devastating earthquake and tsunami.

Meanwhile, Pandora Media Inc. ended its first day of trading at $17.42, after spiking as high as $26 soon after trading began. The shares were priced at $16 on Tuesday evening following its initial public offering.

As well, Research In Motion Ltd. fared better than the overall market, falling just 0.8 per cent. The BlackBerry maker will report its fiscal first-quarter results on Thursday after markets close.



What's up: June 16

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