U.S. Stock Rally Fizzles as Dollar Tumbles, Treasuries Advance
- Focus on gradual tightening lifts emerging stocks, currencies
- S&P 500 fluctuates after rallying most in four weeks
December Fed Liftoff: How High Will They Go?
The biggest rally in U.S. stocks in four weeks fizzled as UnitedHealth Group Inc.’s profit warning rattled the health-care sector and oil’s descent sank energy producers. The Federal Reserve’s signal that any rate increase would be gradual bolstered bonds and sent the dollar to its biggest slump in a month.
The Standard & Poor’s 500 Index slipped as UnitedHealth plunged the most in four years and Chevron Corp. led losses in oil stocks. Treasuries rose and the dollar fell as investors showed few signs of unease after the U.S. central bank signaled it’s likely to raise interest rates next month. Emerging markets rallied, as the focus turned to the Fed’s plan to take a cautious approach to subsequent tightening.