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US stocks drop on Argentine default, weak earnings

Published on Aug 1, 2014 6:01 AM

NEW YORK (AFP) - Wall Street stocks moved sharply lower in early trade on Thursday following news of Argentina's debt default, a rise in US jobless claims and disappointing earnings.

About 35 minutes into trade, the Dow Jones Industrial Average tumbled 135.19 (0.80 per cent) to 16,745.17.

The broad-based S&P 500 dropped 16.92 (0.86 per cent) to 1,953.15, while the tech-rich Nasdaq Composite Index sank 47.44 (1.06 per cent) to 4,415,46.

After hours of meetings Wednesday in New York, Argentine Economy Minister Axel Kicillof emerged to confirm that no deal had been reached with US hedge funds, setting the stage for Argentina's second default in 13 years.

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