Stocks Drop as Dollar Index Touches 2-Year High on Fed
U.S. stocks fell and the Dollar Index touched a two-year high as Federal Reserve meeting minutes disappointed investors looking for a definitive signal that the central bank plans more stimulus. Commodities trimmed gains and Treasuries were little changed.
The Standard & Poor’s 500 Index lost 0.3 percent to 1,338.17 at 2:12 p.m. in New York after drifting between gains and losses for most of the day. The Dollar Index, a gauge of the currency against six major peers, rose 0.2 percent to 83.578, the highest since July 2010. The S&P GSCI Index of commodities increased 0.6 percent, paring a gain of as much as 1.5 percent, as gold futures lost 0.7 percent.
Stocks turned lower and the dollar rallied as minutes from the Fed’s June meeting showed a few Federal Reserve policy makers said the central bank will probably need to take further action to boost the labor market and meet its inflation target.
“A few members expressed the view that further policy stimulus likely would be necessary to promote satisfactory growth in employment and to ensure that the inflation rate would be at the Committee’s goal,” according to the record of the Federal Open Market Committee’s June 19-20 gathering released today in Washington.
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