U.S. stocks headed sharply lower Wednesday after two consecutive sessions of gains, as negotiations between Greece and its creditors hit a snag. The S&P 500 fell 12 points, or 0.6 %, to 2,111. The Dow Jones Industrial Average dropped 145 points, or 0.8 %, to 17,999. The Nasdaq Composite fell 31 points, or 0.6% at 5,128, retreating from its record high reached Tuesday. Ahead of the opening bell, market reaction to a government report showing the U.S. economy contracted by 0.2 % in the first quarter, was muted as data was in line with the market's expectations. Jim Paulsen, chief investment strategist at Wells Capital Management, noted that while Greece headlines are moving markets, the moves are less and less significant. "The revision to GDP data is a look in rear-view mirror. Also, investors know there is a seasonality problem with calculating first-quarter data," Paulsen said. "At this point, stock traders are watching the bond markets carefully, as changes in yields, which can happen rapidly, will affect stock prices," he said. Government bonds rallied as investors sought safety of havens on Wednesday. 10-year Treasury yield , which moves inversely to prices dropped 3 basis point to 2.38%. Negotiations continued on Wednesday, with Greek Prime Minister Alexis Tsipras repairing to meet lenders in Brussels. Media reports said Tsipras had told his government the creditors haven't accepted Greece's latest reform proposal, adding pressure on European stocks as well as U.S. stock futures. Eurozone finance ministers are scheduled to hold a Eurogroup meeting on Greece at 7 p.m. Brussels time, or 1 p.m. Eastern Time.
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