The
Standard & Poor’s 500 Index closed little changed, with the
benchmark declining for a second straight week as biotechnology stocks
tumbled toward a bear market, thwarting a rally led by Nike Inc.
The
Standard & Poor’s 500 Index fell less than 0.1 percent to 1,931.51
at 4 p.m. in New York, after earlier rising as much as 1.1 percent. The
Nasdaq Composite Index lost 1 percent, erasing a 1.1 percent climb,
while the Dow Jones Industrial Average gained 0.7 percent, supported by
Nike’s gains.
Equities
were initially boosted after Federal Reserve Chair Janet Yellen said in
a speech following the close of markets yesterday that the central bank
is on course to raise interest rates this year. Yellen’s remarks
bolstered confidence the economy is sturdy enough to handle higher
borrowing costs. She acknowledged that economic “surprises” could lead
policy makers to change that plan.
The
Fed held its fire on a rate increase last Thursday, saying it’s
considering spillover risks to the U.S. economy from turmoil in global
markets. That sparked declines in U.S. equities in five out of six
sessions prior to Yellen’s speech. The selloff was briefly interrupted
on Monday when Fed officials said a 2015 increase is still warranted.
Traders are split on whether it will happen, pricing in about a 44
percent chance of a hike in December and a roughly 52 percent
probability of liftoff in January.
Further
calming some of investors’ worries about the impact of an
emerging-market downturn, data today showed the world’s largest economy
expanded more than previously forecast in the second quarter. Growth was
boosted by gains in consumer spending and construction. A separate
report showed a final measure of consumer sentiment for September fell
less than forecast, though it reached the lowest level in almost a year.
Source : Bloomberg
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