U.S. Stocks Fall With Bonds on Hawkish Fed Comments; Oil Climbs
- Dudley says market “too complacent” on need for rate hike
- Yen spikes beyond 100 per dollar, weighing on Nikkei futures
Alberto Gallo: Investors Fear Central Bank Monster
U.S. stocks fell with Treasuries, while the dollar pared its decline, after Federal Reserve officials stoked speculation over interest-rate increases despite evidence of uneven growth in the world’s largest economy.
The S&P 500 Index retreated from a record high after New York Fed President William Dudley said borrowing costs could be boosted as soon as next month, while Atlanta Fed chief Dennis Lockhart said he’s confident growth is accelerating, setting the stage for at least one hike this year. Yields on two-year Treasury notes, the coupon maturity most sensitive to policy expectations, climbed as the greenback trimmed a drop of more than 1 percent versus major peers. Oil rose above $46 a barrel on optimism over a potential output freeze.