November 20, 2013
The Standard & Poor’s 500 Index headed for its first three-day slump since September and Treasuries slid as the Federal Reserve indicated it may reduce stimulus in coming months as the economy improves. Gold and silver extended losses and the dollar strengthened.
The S&P 500 lost 0.4 percent to 1,780.44 at 3:28 p.m. in New York after climbing as much as 0.4 percent earlier. Ten-year Treasury note yields increased nine basis points to 2.80 percent. Silver and gold dropped more than 2 percent and oil erased earlier gains. The Bloomberg U.S. Dollar Index, a gauge of the currency against 10 major peers, rose 0.5 percent. The euro slid against most peers as the European Central Bank was said to weigh a negative deposit rate to ward off deflation.
Fed policy makers expected that the economic data will show ongoing improvement in the labor market and “thus warrant trimming the pace of purchases in coming months,” according to the record of the Federal Open Market Committee’s Oct. 29-30 gathering. Stocks pared gains earlier as Fed Bank of St. Louis President James Bullard said a reduction in bond buying is “on the table” for the next policy meeting in December.