A
selloff in biotechnology shares dragged the Nasdaq Composite Index
lower as equities retreated after nearing their highest levels since the
August selloff.
The
Standard & Poor’s 500 Index ended its longest winning streak this
year, after surging yesterday near where an advance faltered at the end
of August, and another rally ran out of steam after the Federal Reserve
stood pat on interest rates last month. The Nasdaq Biotechnology Index
tumbled 3.8 percent, while energy and raw-materials shares rose as
investors continued to favor the beaten-down sectors.
The
S&P 500 fell 0.4 percent to 1,979.96 at 4 p.m. in New York, after
reaching a two-week high Monday. The Nasdaq Composite sank 0.7 percent,
weighed on by biotechs’ decline.
The
S&P 500 ended a five-day advance that had restored almost $700
billion to U.S. equity prices, as expectations for a Federal Reserve
interest-rate increase were pushed out into next year. That sent the
dollar lower and boosted energy, raw-material and industrial shares amid
speculation that a weaker U.S. currency will lift profits for
multinational companies which benefit when their overseas earnings are
converted back to dollars.
A
slowdown in emerging markets driven by weak commodity prices forced the
International Monetary Fund to cut its outlook for global growth this
year to 3.1 percent from a July forecast of 3.3 percent. Next year the
world economy will expand 3.6 percent, less than the 3.8 percent
projected in July, the fund predicted.
Source: Bloomberg
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