U.S. Stocks Decline Before Tomorrow’s Fed Decision on Stimulus

Bloomberg (18/12) -- U.S. stocks fell, following yesterday’s rally for the Standard & Poor’s 500 Index, before Federal Reserve policy makers announce plans for their monthly bond-buying program tomorrow. The S&P 500 declined 0.3 percent to 1,780.95 at 4 p.m. in New York. The S&P 500 has fallen 1.3 percent this month, leaving it on track for the first December decline since 2007. Traders have boosted hedging against stock losses, driving the Chicago Board Options Exchange Volatility Index up 16 percent since the end of November. The equities benchmark climbed 0.6 percent yesterday, halting a four-day decline, amid concern that improving economic data would prompt the Fed to slow its stimulus as soon as tomorrow. About 34 percent of economists surveyed by Bloomberg on Dec. 6 predicted that the Fed will start to reduce its $85 billion of monthly bond purchases when it concludes the policy meeting. That compared with 17 percent in a survey from November.