U.S. stocks fell a second day, giving the Standard & Poor’s 500 Index its biggest back-to-back drop in two months, as a congressional budget accord fueled speculation the Federal Reserve could trim stimulus next week.
Democrats controlling California’s legislature said the state can afford spending more on welfare and other social programs and still sock away money for a reserve from a projected $2.2 billion surplus.
U.S. stocks fell the most in a month and Treasuries dropped as an agreement on a budget plan fueled speculation the Federal Reserve will be confident enough in the economy to reduce stimulus. Gasoline and oil slid while the yen and euro strengthened.
Puerto Rico’s economic activity index posted the 11th-straight year-over-year drop in October, as the commonwealth struggles to halt a slide that is contributing to the worst year for its debt since 1999.