NEW YORK — The latest twists in Europe’s debt drama weighed down the stock market Tuesday, offsetting more good news on the U.S. housing market.
The Dow Jones industrial average managed a gain of just four points, while other indexes closed slightly lower. Investors were focused on Cyprus, where the Mediterranean country’s lawmakers vote against a proposed bailout plan for banks that would have called for raiding the savings accounts of ordinary citizens, setting a precedent in Europe’s ongoing debt crisis. The vote happened 90 minutes before U.S. markets closed, at 2:30 p.m. Eastern time.
The plan was rejected — with zero votes in favor — even after being changed to lessen the burden on savers with lower balances. The vote leaves Cyprus’s bailout from international lenders in question. Cyprus is seeking $15.8 billion to fund its government and its banks. Without the money, both could collapse, and the country could wind up leaving the union of 17 countries that use the euro.