May 22 (Bloomberg) -- U.S. stocks erased gains and the euro extended losses versus the dollar, while Treasuries trimmed earlier declines, on concern that Greece was making preparations to exit the euro.

The Standard & Poor’s 500 Index slipped 0.1 percent to 1,314.16 at 3:41 p.m. in New York after rallying as much as 1 percent. The euro slid 1.1 percent to $1.2682 and 10-year Treasury yields increased three basis points to 1.77 percent after surging as much as six points earlier.

U.S. equities reversed gains and the euro sank to its low of the day after Dow Jones reported that former Greek Prime Minister Lucas Papademos said the nation is considering preparations to leave the shared currency. The comments wiped out an earlier rally in stocks triggered by an increase in U.S. home sales and speculation leaders in Europe and China would step up efforts to bolster economic growth.

To contact the editor responsible for this story: Michael P. Regan at [email protected]