U.S. Stocks Drop on Obama Remarks as Treasuries, Oil Gain

U.S. stocks fell, erasing early gains, as President Barack Obama said international order is being tested by Russia’s annexation of Ukrainian territory. Treasuries rose following stronger-than-forecast demand at an auction. Oil and the yen rallied.

The Standard & Poor’s 500 lost 0.7 percent to 1,852.56 at 4 p.m. in New York, with losses accelerating in the final hour of trading after the gauge climbed during the morning to within three points of its last record close on March 7. The Russell 2000 Index of smaller companies lost 1.9 percent, the most since Feb. 3. The yield on 10-year Treasuries fell six basis points to 2.69 percent. The yen strengthened 0.3 percent versus the dollar, reversing an earlier drop. Oil rose 1.1 percent after U.S. inventories decreased.