US stocks fall more than 1%

FXStreet (Córdoba) - US stocks fell sharply at the opening as the dollar strengthened further amid growing speculation the Federal Reserve could start hiking interest rates in June, in contrast with other major central banks.

The Dow Jones Industrial Average dropped 219 points, or 1.2%, to 17,778. The S&P 500 index fell 23 points, or 1.1%, to 2,056, and the Nasdaq Composite lost 64 points, or 1.30%, to 4,878.

Strong US nonfarm payrolls published last Friday fueled prospects the Fed could raise interest rates sometime mid-year, boosting the greenback across the board and weighing on stocks and commodities.

The US dollar index reached an 11-year high of 98.50 while EUR/USD fell to its lowest level in 12 years at 1.0725 on Tuesday.

Meanwhile renewed concerns about Greece debt situation also depressed risk sentiment and stocks across the globe.

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