DOW

12,653.72  -6.74  -0.05%

By: JeeYeon Park

CNBC.com Writer

Stocks cut most of their earlier losses, but still finished in negative territory Monday as ongoing worries over the euro zone debt crisis kept investors from fully jumping in.

The Dow Jones Industrial Average shaved most of its losses but still finished lower by 6.74 points, or 0.05 percent, to end at 12,653.72.


The S&P 500 fell 3.32 points, or 0.25 percent, to finish at 1,313.01. And the Nasdaq slid 4.61 points, or 0.16 percent, to close at 2,811.94.

The CBOE Volatility Index, widely considered the best gauge of fear in the market, ended above 19.

EU leaders met in Brussels to sign off on a permanent rescue fund for the euro zone. Greek Prime Minister Lucas Papademos will be among them as negotiators in Greece race to secure a debt swap deal.


A FT report said that Greece had angrily rejected a German proposal to create a European budget “overseer” to monitor the country’s finances in return for a second bailout, further adding to investors’ anxiety on Monday.

A glimpse of hope for the debt-stricken region came in the form of a positive debt auction for Italy, which saw its borrowing costs for long-term debt fall sharply.