U.S. Stocks Fall as Bonds Rise on Budget, Fed Concern

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.

The Standard & Poor’s 500 Index dropped 0.7 percent at 4 p.m. in New York for its biggest drop since Aug. 27. The Stoxx Europe 600 Index declined 0.3 percent. Yields on 10-year Treasuries slipped two basis point to 2.73 percent. The MSCI Emerging Markets Index fell after rallying 2.2 percent yesterday, as India’s banks drove a slump in financial shares. The S&P GSCI Index slid 0.7 percent after gold declined 2.7 percent and silver had the biggest retreat in three months. Oil fell to a one-month low.