US stocks avoid escalation of risk-off, Cisco rallies

By FXStreet Stock markets fell 1.5% following the rout in Europe, but have managed to restrict losses and therefore avoid escalation of the risk aversion seen in European stocks.

Currently, the Dow Jones Industrial Average (DJIA) index is down 200 points or 1.3%. The S&P 500 index is down 21 points or 1.1%. Nasdaq index trimmed losses as well to trade 0.5% lower on the day.

Banking stocks remain under pressure with JP Morgan and Goldman Sachs making into the top losers squad. Shares in Cisco rose 8% after the company posted a 31% jump in quarterly net profit on Wednesday.

The good news comes to an end with Cisco as all other major DJIA sectors are trading in red. DJIA financials index is down 2.4%. Oil and Gas index is down 1.6% as well, but the investors are now focused on banking sector. Oil is not longer the reason for the risk-off in the markets.
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Source:: FX Street