Stocks Take a Dive

American equities experienced one of their worst sessions in months following a 332 point drop in the Dow Jones Industrial Average as disappointing consumer data weighed on the outlook. The savings rate for consumers has risen to a multi-year high and with spending taking a tumble in the first quarter, expectations are for a struggling retail sector as consumer spending fails to rebound. The surging dollar, which is rising at the fastest pace in 34-years, is not helping corporate multinationals deriving revenues from abroad as exports become more expensive. After reaching and crossing the previous record highs reached during the dotcom bubble, the Nasdaq Composite has also retraced lower, with stocks giving up gains for 2015 year-to-date. The recovery in employment is not enough to offset other disappointing factors like the problematic student loan bubble and popping subprime auto-lending market.

With the deadline rapidly approaching for several important repayments, Greece is quickly running out of operating cash as it seeks to stave of default and bankruptcy. The European Commission, IMF, and ECB are set to meet today in Brussels to discuss the latest Greek reform proposals as the time limit looms large. Sentiment from regional leaders is negative as they accuse the Greeks of foot dragging in the situation which requires imminent resolution to avoid a credit event. Without the additional €7 billion transferred under the terms of the last bailout, cash is forecast to run out by the end of the month as the nation must already grapple with shortages of basic goods. Uncertainty and a stronger dollar have sent the Euro tumbling lower against peers, falling below 1.0700 as investors await the results of the latest discussions.