Stocks Drop With Commodities While U.S. Treasuries Gain
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U.S. stocks fell as concern about the federal budget debate wiped out an earlier rally led by retailers after Home Depot Inc.’s earnings bolstered confidence in the housing market. Treasuries rose while commodities slid.
The Standard & Poor’s 500 Index closed down 0.4 percent at 1,374.53 at 4 p.m. in New York after a 0.6 percent morning rally. Yields on 10-year U.S. notes lost two basis points to 1.59 percent, while the dollar strengthened against 13 of 16 major peers. The S&P GSCI Index of commodities dropped 0.2 percent as declines in coffee, gold and oil overshadowed a surge in natural gas to a one-year high.