U.S. stocks fell, pulling the Standard & Poor’s 500 Index down from a two-month high, as deteriorating federal budget negotiations fueled concern that automatic tax increases and spending cuts will be triggered.
Stock and bond investors enjoying the biggest advance in more than a decade under Barack Obama may see the momentum fade as the rallies age and the president confronts Congress over spending cuts and taxes.
A cowboy-hat-wearing robot with “Sell” emblazoned across its chest adorns a wall-length mural in the lounge of RGM Advisors LLC in Austin, Texas. Another robot, with “Buy” on it, wobbles toward a green Wall Street sign as two machines tote spark-emitting high-speed cables.
Options traders are speculating the lockstep moves in U.S. equities that punished investors last year are on the way back as the benchmark volatility gauge posts its longest streak of increases since 2003.
U.S. stocks fell the most in 14 months, erasing the Standard & Poor’s 500 Index ’s 2010 advance, as concern Greece’s debt crisis is spreading and the most volatile trading in 23 years sent the gauge down 6.3 percent.
U.S. stocks fell, sending the Standard & Poor’s 500 Index to its worst weekly loss in two months, as Spanish, French and Italian bond yields rose and Fitch Ratings said Europe’s debt crisis poses a threat to American banks.
A late rally in U.S. stocks faded, dragging the Standard & Poor’s 500 Index to a third straight loss, after Ireland’s downgrade to junk added to concern Europe is losing control of the credit crisis and overshadowed evidence the Federal Reserve hasn’t ruled out more stimulus.