US stocks retreat after short relief rally

New York, June 11 (IANS) US stocks retreated after a short rally Monday as enthusiasm on the Spanish bank aid package faded.

Spain will be lent up to 100 billion euros ($126 billion) to rescue its banking system, Xinhua reported.

The size of aid package was larger than previously expected and spurred a relief rally in equity markets around the world.

However, enthusiasm soon faded amid concerns about the details of the bailout and skepticism that any fundamental issues really have been solved.

At the same time, investors also worried that Italy, whose banking system has been suffering from short of money, will be the next domino falling apart.

Meanwhile, the upcoming Greece election also kept a lid on the market. If the party against the current austerity plan wins the voters, the debt-ridden country may have to exit from the euro zone and cause more turbulence in the global financial markets.

In midday trading, the Dow Jones industrial average fell 36.67 points, or 0.29 percent, at 12,517.53. The Standard & Poor's 500 was down 3.11 points, or 0.23 percent, to 1,322.55. The Nasdaq Composite Index dropped 10.17 points, or 0.36 percent, to 2,848.25.