Eurozone debt crisis could spark bear market in US, Goldman Sachs warns A report said that although it was most likely that an election on June 17 would result in Greece remaining in the single currency, "financial contagion or crisis in Spain" could prompt a bear market. Outlining mid-year forecasts, David Kostin, chief US equity strategist, said that should the crisis in the region worsen, the S&P 500 index could fall to 1,125. That would represent a 21pc loss compared with its 2012 closing peak of 1,419.04. Mr Kostin said there were three key events in the short-term that could heighten investor uncertainty: the Greek election on June 17; the June meeting of the Federal Open Market Committee; and the US Supreme Court's ruling on healthcare reform. He gave a central mid-year forecast for the S&P 500 of 1,325, should there be no intensification of the eurozone crisis. On Monday the index was down 0.8pc at 1,268 following an unexpected drop in new factory orders in the US, and a grim survey on business activity in New York. The Dow Jones Industrial Average was also down, by 0.5pc at 12,054. British markets were closed but most European markets were open. The German DAX closed down 1.2pc at 5,978.23 as the country's policymakers looked increasingly isolated in their refusal to back EU rescue funds for banks. It was the first time the German blue-chip stock index had dropped below the key psychological level of 6,000 since January. Despite Spain's financial woes and a banking system feared to be on the verge of collapse, the country's IBEX 35 index finished up 2.9pc. Investors were buoyed by hopes that the eurozone might move towards greater centralised control of national budgets in the single currency bloc, after comments by Mariano Rajoy, the Spanish prime minister, at the weekend. The CAC 40 in France rose 0.1pc.