The Dow industrials fell the most in more than a month amid mounting doubts about more stimulus from the Federal Reserve and concerns about the sustainability of the summer’s gains.
The Dow Jones Industrial Average gave up 115.30 points, or 0.9%, to 13057.46, its biggest drop since July 20. The pullback further trimmed a nearly 10% rally from the blue-chip benchmark’s early June lows through Friday, the last day the average notched an increase.
The Standard & Poor’s 500-stock index slipped 11.41 points, or 0.8%, to 1402.08, and the Nasdaq Composite Index dropped 20.27 points, or 0.7%, to 3053.40.
“The market’s had a big move; it’s digesting it,” said Tim McCandless, senior equity analyst at Bel Air Investment Advisors in Los Angeles, which manages more than $6 billion. “People have been confused at why the S&P 500 is doing so well while the economy is not.”
Weighing on investors’ minds, Federal Reserve Bank of St. Louis President James Bullard in an interview on CNBC said Federal Reserve policy makers may hold off on further efforts to bolster the economy because of continued modest economic growth in the U.S.
Source:Wall Street Journal