Stocks Slide amid Global Fears

U.S. stocks closed sharply lower on Wednesday, as investors grappled with a precipitous selloff in Chinese shares and lingering nervousness over Greece. The Dow Jones Industrial Average dropped 261.49 points, or 1.47%, to 17,515.42. The S&P 500 lost 34.65 points, or 1.66%, to 2,046.69. The Nasdaq Composite was down 87.70 points, or 1.75%, to 4,909.76.

Federal Reserve officials in June saw the economy moving toward conditions that would support an interest-rate increase, while also expressing concern about weak consumer spending and risks from China and Greece.

Greece promised to implement pension and tax reforms as early as next week as the first step to securing a three-year rescue loan to cover debt obligations, according to a letter requesting the funding from European partners on Wednesday.

American consumers increased credit by an annualized 5.7% pace in May, mainly to buy cars and trucks and pay for college loans. Consumers increased their debt by a seasonally adjusted $16.1 billion in May, the Federal Reserve said Wednesday.

J.P. Morgan Chase & Co. intends to pay at least $125 million to settle probes by state and federal authorities over its collection and sale of credit-card debt, people familiar with the matter said.