Dollar Gains, Stocks Slip Before Fed as Oil Slumps: Markets Wrap
- U.K. currency falls to lowest since January after Brexit vote
- Oil heads for seventh day of declines after OPEC data
Chief Economist French Sees Data Holding Down Yields
U.S. stocks slumped as crude tumbled past $48 a barrel after Saudi Arabia disclosed an increase in production, while the dollar advanced as investors gear up for Wednesday’s Federal Reserve decision.
Oil slid more than 1.4 percent, while the S&P 500 Index headed for its worst loss in two weeks after OPEC data showed Saudi Arabia reversed one third of the production cuts. Energy, industrial and materials shares led losses. The dollar was in demand before an anticipated Fed rate hike, and the pound slid as the British Prime Minister won permission to trigger the country’s departure from the EU. The yield on 10-year Treasuries fell below 2.60 percent. The CBOE Volatility Index rose 8.4 percent, the most in a month.