U.S. stocks sank, extending the Standard & Poor’s 500 Index’s worst two-day drop since June, amid disappointing results at JPMorgan Chase & Co. and signs hedge funds were dumping the bull market’s best performers.
U.S. stocks fell, giving the Standard & Poor’s 500 Index its worst week since 2012, amid disappointing results at JPMorgan Chase & Co. and signs hedge funds were dumping the bull market’s top performers. Treasuries rose, while oil hit a five-week high.
Federal Reserve Bank of Dallas President Richard Fisher, who has supported scaling back of the Fed’s bond buying, cautioned that there are signs in financial markets indicating the program may be emboldening investors to take excessive risks.
Eugene F. Fama, Robert J. Shiller and Lars Peter Hansen shared the 2013 Nobel Prize in Economic Sciences for at times conflicting research on how financial markets work and assets such as stocks are priced.
Former Federal Reserve Chairman Alan Greenspan said in an interview on Bloomberg Television’s “Political Capital with Al Hunt,” airing this weekend, that the U.S. economy probably will grow more slowly next year than some forecasters predict and indicated that a record U.S. stock market isn’t in a bubble.