U.S. Stocks Slide as Fed-Induced Dollar Rally Sinks Commodities
- S&P 500 erases rate-hike gains as resources shares sink
- Oil drops below $35 a barrel; gold slumps most since March
Fed Liftoff Highlights U.S. Economy's Strength
U.S. stocks wiped out gains posted in the wake of the Federal Reserve’s interest-rate increase as the strengthening dollar sparked a selloff in commodities, sending prices to the lowest level in 16 years. Treasuries rebounded.
The Standard & Poor’s 500 Index snapped a three-day rally as raw-materials producers retreated. Metals tumbled as the rate hike damped their attractiveness versus assets that pay interest, while oil slumped below $35 a barrel in New York. The greenback surged to its highest level versus major peers in data going back to 2005 as the Fed’s divergence from other central banks boosted its appeal, while the Argentine peso sank after it was freely floated. Treasuries more than recouped losses sustained after the Fed decision.