U.S. stocks fell, pulling the Standard & Poor’s 500 Index down from a record, and the yen strengthened as concern American lawmakers will fail to reach a budget deal overshadowed better-than-estimated economic data. Oil, gold and coffee led commodity gains as the dollar weakened.
U.S. stocks fell, after the Standard & Poor’s 500 Index reached a record, as investors weighed federal budget negotiations and better-than-estimated economic data to gauge the timing of any Federal Reserve stimulus cuts.
Most Federal Reserve policy makers said the central bank was likely to taper its bond purchases this year, even as they unexpectedly refrained from such a move in September, minutes of their last meeting show.
U.S. stocks surged while the benchmark gauge of options prices slid the most in two years as the Senate crafted a deal to end the government shutdown and raise the debt ceiling. Treasury bill rates dropped while energy led commodities higher and the yen fell against all major peers.
Treasury 10-year note yields touched the highest level in more than a week after business activity expanded at the fastest pace in more than two years, adding to speculation the Federal Reserve’s stimulus is working.
Goldman Sachs Group Inc., Visa Inc. and Nike Inc. will be added to the Dow Jones Industrial Average, replacing Bank of America Corp., Hewlett-Packard Co. and Alcoa Inc. in the biggest reshuffling since April 2004.