U.S. Stocks Fall Amid Earnings Concerns as Fed Rate Bets Rise
- Alcoa tumbles after quarterly profit misses estimates
- Chance of December boost in borrowing costs climbs toward 68%
The Likelihood of Three Fed Rate Hikes by End of 2017
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The S&P 500 Index fell to an almost four-week low as an early batch of disappointing corporate results damped optimism over a rebound in earnings, while growing speculation that the Federal Reserve will raise interest rates this year undermined demand for riskier assets.
Equities suffered the worst decline in a month, with Alcoa Inc. tumbling the most in seven years as its earnings missed estimates. Health-care shares were the biggest losers, weighed down by Illumina Inc.’s 25 percent plunge after it said sales were lower than anticipated. Commodity producers retreated as a gauge on the dollar reached a two-month high, and chipmakers saw their biggest drop in four weeks.