Valuations in the Standard & Poor’s 500 Index increased by the most since the financial crisis last year as 460 stocks rose, more than any year since at least 1990. Neither are reasons to bet against equities now.
Baidu Inc. dropped the most in two months, leading a decline in U.S.-traded Chinese stocks, on concern the nation’s largest online search engine will see a drop in advertising revenue as the economy slows.
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.
U.S. stocks fell this week, trimming the biggest monthly rally for the Standard & Poor’s 500 Index in a year, after economic reports and earnings forecasts from technology companies disappointed investors.