By Gary P Jackson
Stocks added to sharp losses across the board Thursday after the Supreme Court upheld a key part of President Obama’s health care overhaul and amid skepticism that European leaders would be able to form a solution to tackle the ongoing debt crisis.
The Dow Jones Industrial Average fell sharply, led by JPMorgan, after finishing higher for the second day in the previous session.
The S&P 500 and the Nasdaq also dropped more than 1 percent. Nasdaq briefly turned negative for the month of June. The CBOE Volatility Index, widely considered the best gauge of fear in the market, jumped near 21.
All 10 S&P sectors were trading in negative territory, led by financials and techs.
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Experts were mixed on the announcement.
“The follow-through from this in the next few days and weeks is that more money will come into health care now that the cloud of uncertainty has been lifted,” said Credit Suisse’s Charles Boorady. “And as a country, we’re going to spend about $2 trillion more on health care with this law and that’s all money coming into health care, which will ultimately be good for the managed health care stocks.”
Meanwhile, Barry Knapp of Barclays said public policy uncertainty will continue to rise, putting further damper on business confidence.
“It’s a pretty clear negative,” said Knapp. “Markets were going down anyway and this is just going to be a pretty clear negative catalyst over the next or two as opposed to something to stop the bleeding.”
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