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US stocks tumble on oil prices, Greece doubts

New York - US stocks tumbled on Tuesday on worries about higher oil prices and a spike in tensions over the Greek debt crisis.

The Dow Jones Industrial Average dropped 142.20 points to 17 928.20.

The broad-based S&P 500 lost 25.03 points at 2 089.46, while the tech-rich Nasdaq Composite Index sank 77.60 points to 4 939.33.

Jack Ablin, chief investment officer at BMO Private Bank, cited the rise in US oil prices above $60 a barrel as a drag on stocks. US gasoline prices have risen 10% in the last month.

Analysts also cited a sharp rise in the US trade deficit in March and the growing rift between Greece and its creditors over the terms of a bailout. European stocks fell sharply, with Germany's DAX 30 dropping 2.5% and France's CAC 40 losing 2.2%.

Losses were broad-based with virtually all members of the 30-stock Dow ending lower.

However, many technology companies fell a bit harder than companies in other sectors. Dow members Apple and Intel fell 2.3% and 2.4%, respectively, while Google dropped 1.9% and Gilead Sciences shed 2.5%.

Exceptions included Netflix (+1.9%), which was upgraded by Bank of America Merrill Lynch, and Tesla Motors (+1.1%), which reports earnings on Wednesday.

Chinese online giant Alibaba fell 1.3% to a new all-time low below $80, two days before it releases quarterly earnings. Chairman Jack Ma announced a hiring freeze last week, saying the company had grown too fast.

Cosmetics company Estee Lauder jumped 4.0% as net income for the quarter ending March 31 came in at 71 cents per share, seven cents above expectations.

EOG Resources tumbled 4.9% after reporting a first-quarter loss of $169.7m. The oil producer was also singled out by money manager David Einhorn at an investor presentation on Monday for wasteful spending on fracking.

Bond prices fell. The yield on the 10-year US Treasury rose to 2.18% from 2.13% on Monday, while the 30-year advanced to 2.91% from 2.87%. Bond prices and yields move inversely.

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