By Chuck Mikolajczak
NEW YORK (Reuters) - U.S. stocks fell on Monday but staged a late comeback after fears of a looming Greek debt default diminished on news of a possible deal to advance new bailout funds to Greece.
Stocks spent most the session sharply lower after European leaders disappointed investors by failing to come up with any new solutions to the euro zone's sovereign debt crisis over the weekend.
However, a Greek finance ministry official said after talks on Monday with the European Union and International Monetary Fund that the country was near an agreement with international lenders to continue receiving money. For details, see
"For the time being it looks as though there is hope the conversation is going to take on a more positive and constructive tone," said Peter Kenny, managing director at Knight Capital in Jersey City, New Jersey.
"A little reason for a little buoyancy in the market, but we've seen this before."
Energy and financial stocks were among the worst performers of the session. The PHLX oil service sector index dropped 1.7 percent as oil prices settled down 2.6 percent to $85.70 on demand worries. For details, see
The KBW bank index fell 2.8 percent following a steep decline in European banks on worries euro zone leaders won't be able to prevent debt-stricken Greece from sliding into default. Citigroup Inc slipped 4.4 percent to $27.71.
International lenders told Greece on Monday it must shrink its public sector and improve tax collection to avoid default within weeks as investors, unnerved by political setbacks in Europe dumped risky euro zone assets. Continued...
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