US stocks tumble ahead of key data, FOMC minutes
US stocks fell after an intraday rally sent the Standard & Poor’s 500 Index to 1,800 for the first time. The tumble came as market participants look ahead to an active newswire, headlined by the October FOMC meeting minutes and manufacturing PMI.
Some investors put on the brakes amid growing concern the stock market is rising too quickly. The S&P 500 is on its way to the best performance in a decade. The Dow Jones Industrial Average, having surpassed 16,000 briefly in intraday trade, has risen more than 19 percent since January 1.
“We’ve moved pretty far pretty fast,” said Kevin Caron of New Jersey-based Stifel Nicolaus Co. “Obviously there’s potential for a little bit of a pullback.” Stocks have enjoyed a favourable climate due to prolonged Fed stimulus and strong corporate earnings.
The Dow Jones managed to hold on to some of its gains even after half of its 30 members reported losses. The benchmark gauge edged up more than 14 points to 15,967.00. The S&P 500 fell more than 6 points to 1,791.53, after eight of its 10 main industries declined. The NASDAQ tumbled almost 1 percent to 3,040.07 after Microsoft Corp (NASDAQ:MSFT) fell 1.7 percent. The worldwide software maker backtracked after its rating was cut by Bank of America Corp (NYSE:BAC) . Facebook (NASDAQ:FB) declined 6.5 percent after investors learned the social media giant was unable to buy-out mobile app Snapchat for $3 billion.
Market participants will have the opportunity to scrutinize the latest round of Fed talks on November 20, when the minutes of the October meetings are to be published. The Fed’s October press release was less dovish than anticipated, which fueled speculation the central bank could pare asset purchases early next year. Market participants will weigh the thought process behind the official statements against Janet Yellen’s recent testimony, which was in full support of record stimulus.
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