U.S. stocks fell the most since August and Treasuries rose as concerns grew that political debate over government spending and potential Federal Reserve stimulus cuts may pose a threat to economic growth. Emerging- markets shares dropped and gold retreated the most in 11 weeks.
U.S. stocks were little changed as consumer, industrial and commodity companies rose, helping the market reverse an early drop triggered by lower-than-forecast factory orders and concern Europe’s banks need to raise capital.
U.S. stocks and Treasuries fell as housing and manufacturing data fueled speculation the Federal Reserve may reduce its asset-buying this year as investors weighed earnings reports from Apple Inc. to Caterpillar Inc.
The Standard & Poor’s 500 Index rose to a record close, erasing earlier losses, as better-than- estimated results from General Electric Co. overshadowed disappointing earnings from Google Inc. and Microsoft Corp. Gold advanced and the dollar slumped.