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US stocks fall as Cyprus bailout plan reignites concerns about euro-region debt crisis

NEW YORK, N.Y. – Stocks are declining on Wall Street as traders worry that a proposed bank bailout for the Mediterranean island nation of Cyprus could cause the euro crisis to flare up again.

The Dow Jones industrial average was down 35 points, or 0.2 per cent, at 14,479 at noon Monday. It has been down as much as 110 points.

The Standard & Poor’s 500 fell six points, or 0.4 per cent, to 1,554. The Nasdaq dropped 11 points, or 0.3 per cent, to 3,238.

Cyprus is proposing a hefty levy on bank deposits as a condition for a national bailout. The proposal roiled international markets and sent the euro lower against the dollar.

Financial stocks led the declines on Wall Street. Morgan Stanley fell 3 per cent to $22.86 and Citigroup fell 2 per cent to $46.18.