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Stocks tumble amid euro, Dell concerns

Traders work on the floor of the New York Stock Exchange.
Traders work on the floor of the New York Stock Exchange.Richard Drew / AP

Stocks tumbled Wednesday, as concerns mounted over Greece's future in the euro zone.

The Dow Jones industrial average was lately down over 140 points.

Tech shares ranked among the day's biggest decliners as a weaker-than-expected revenue forecast from Dell Inc, the third-largest computer maker, hurt investor sentiment.

Euro-zone officials have agreed that each euro-zone country must prepare an individual contingency plan in the event that Greece decides to leave the single currency bloc. The agreement was reached during a teleconference of the Eurogroup Working Group, which lasted for about an hour on Monday.

"It's very frightening to hear about this kind of talk, even if it makes sense as a contingency, because the lack of a clear path there continues to be very problematic for banks," said James Dunigan, chief investment officer of PNC Wealth Management in Philadelphia.

Dell Inc plunged after forecasting disappointing second-quarter revenue as U.S. and European corporate tech spending weakens and consumer personal computer sales keep shrinking.

Falling oil prices also dragged on the energy sector, with an S&P index of energy companies' stocks down 1.9 percent. U.S. crude oil futures fell $2 and dropped below $90 a barrel for the first time since November 1, as easing concerns about Iran's nuclear dispute with the West and increasing worries about global economic growth drove the price oil lower.

Stocks briefly trimmed their losses earlier in the session after data showed new single-family home sales rose more than expected in April and prices pushed higher, offering further evidence the housing market was turning the corner.

"This adds to the growing sense that housing is stabilizing, but it isn't enough to overcome the global issues driving the day," said Dunigan, who helps oversee $112 billion in assets.

Facebook Inc and banks, including Morgan Stanley, were sued by the social networking leader's shareholders, who claimed the defendants hid Facebook's weakened growth forecasts ahead of its $16 billion initial public offering.

Even so, Facebook’s stock price was lately up 2.4 percent at $31.74.

Reuters contributed to this report.