U.S. stocks fell after the International Monetary Fund cut its 2014 growth outlook for the nation and urged the Federal Reserve to carefully manage its exit from monetary stimulus plans.
The Standard & Poor’s 500 Index dropped 0.4 percent to 1,629.93 at 11:06 a.m. in New York.
The Washington-based IMF lowered its prediction for 2014 to 2.7 percent, from 3 percent growth predicted in April. It left its U.S. growth forecast for this year unchanged at 1.9 percent.
The IMF sees the Fed maintaining large monthly bond purchases until at least the end of this year and urged the central bank to carefully manage its exit plan to avoid disrupting financial markets.