It's beginning to feel like deja vu all over again, as downbeat economic rumblings out of western Europe have begun pressuring U.S. equities, with Italian political uncertainty taking the spotlight off Cyprus today. As a result the Dow Jones Industrial Average, which had topped out record highs yesterday, fell sharply at the open, pulling the Nasdaq and S&P 500 indexes down with it, although the indexes have managed to pare their losses, pushing to their best levels of the day in recent dealings.
Stocks in Europe tumbled after efforts to form an Italian coalition government failed. The head of Italy's center-left alliance, Pier Luigi Bersani, ruled out forming a coalition government and said that only an "insane person" would want to govern Italy and that the country is a "mess". Italy is still struggling to form a government following February's inconclusive election.
Elsewhere in Europe, Cypriot authorities were expected to announce capital controls later Wednesday in preparation for the country's supposed reopening of the country's banks on Thursday. The banks have been shuttered since March 16th to prevent a mass withdrawal, with market volatility anticipated tomorrow once they reopen.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
