U.S. Stocks Fall, Dollar, Treasuries Gain as Fed Damps QE3 Bets

U.S. stocks fell, while the dollar and Treasuries rallied, as the Federal Reserve refrained from taking more steps to stimulate the economy and concern grew that European leaders won’t agree on ways to expand the region’s bailout capacities. Gold slumped to a seven-week low.

The Standard & Poor’s 500 Index lost 0.9 percent to 1,225.73 at 4 p.m. in New York, wiping out a gain of as much as 1.1 percent. The Dollar Index rose 1 percent, topping 80 for the first time since January, as the euro fell on reports that German Chancellor Angela Merkel rejected boosting Europe’s permanent bailout fund. Ten-year Treasury yields slipped five basis points to 1.97 percent following stronger-than-average demand at an auction. The S&P GSCI Index of commodities rose 1.5 percent after surging as much as 2.3 percent.