Bank of America Slips 3 Percent, as Greece Worries Drag Stocks Lower

Monday's stock selloff picked up speed in the final hour of trading, a warning sign that investors can expect more turmoil from Greece's debt crisis. All three major stock indexes closed lower by over 2 percent. The Dow is down 1.1 percent for the year. The S&P 500 gave up almost all of its gains year-to-date. With no deal in place, Greece is likely to default on its $1.7 billion payment due to the International Monetary Fund on Tuesday, unless an 11th hour deal is made, paving the way for additional markets turmoil. Meanwhile, Standard & Poor's lowered Greece's long-term credit rating to ‘CCC minus’ from ‘CCC’ and pegs the odds of a Grexit at 50 percent. 'In our view, the Greek government's decision to hold a national referendum on official creditors' loan proposals indicates that Prime Minister Alexis Tsipras will prioritize domestic politics over the country's financial and economic stability, commercial debt service, and membership of the eurozone,' Standard & Poor's said. The CBOE Volatility Index VIX.X surged 34 percent. In the U.S., banks were hit the hardest. JPMorgan Chase (JPM) shares closed lower by 2.6 percent, while shares of Citigroup (C) fell 2.6 percent and Bank of America (BAC) slipped 3 percent. Crude oil prices fell 2.18 percent on Wednesday, a three-week low, settling at $58.33 a barrel.