U.S. Stock Rally Fades as Commodity Shares Slip; Dollar Weakens
- S&P 500 reverses gain in afternoon trading as miners slide
- Yellen's dovish testimony sparked a rally earlier in the day
Yellen: No Known Restriction Preventing Negative Rate
The rally in U.S. stocks evaporated in the final hour of trading as speculation that the Federal Reserve will hold off on raising interest rates gave way to renewed concern over the strength of the American economy. The dollar fell, while Treasuries rose.
The Standard & Poor’s 500 Index capped a second day of volatile trading virtually where it began, after the gauge erased an advance that topped 1.5 percent at its height. Fed Chair Yellen signaled financial-market volatility could delay rate increases as the central bank assesses the impact of recent turmoil on domestic growth. Ten-year Treasury yields broke below 1.70 percent after an auction drew the lowest rates since 2012. The dollar dropped to its lowest level since November versus major peers. Oil fell to a three-week low.