U.S. Stocks Dive as Stimulus Uncertainties Persist
NEW YORK (TheStreet) -- U.S. stocks sank Wednesday as uncertainty about the direction of global stimulus programs put a brake on sentiment that the recovery of the world's largest economy may be strengthening.
TheS&P 500 fell 0.84% to close at 1,612.52. The decline came after the index rose as much as 0.7% in early trading. The S&P 500 posted its third-consecutive daily decline. The Dow Jones Industrial Average also lost 0.84% and slipped below 15,000 at 14,995.23 while the technology-heavyNasdaq declined 1.06% to 3,400.43.
"I think a little bit of caution is always good, but just trying to evaluate what does it mean when the Federal Reserve stops giving everybody free money," said Ron Florance, managing director of investment strategy at Wells Fargo Private Bank. "We're in the cycle where instead of buying on the dips, people are selling on the spikes and, I think, re-positioning portfolios for quarter end."
First Solar was the deepest decliner on the S&P a day after the company announced it would offer 8.5 million shares of common stock. Shares of the Tempe, Ariz.-based company dropped 10.7% to $46.66.
The benchmark 10-year Treasury note was sliding 13/32, boosting the yield to 2.237%. Gold futures for August delivery popped $15 to settle at $1,392 an ounce.
Written by Andrea Tse and Joe Deaux in New York
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