U.S.
stocks declined, following equities’ best week since July, before the
Federal Reserve decides on Thursday whether the economy and turbulent
financial markets can handle higher interest rates.
The
Standard & Poor’s 500 Index slipped 0.4 percent to 1,953.02 at 4
p.m. in New York, after the gauge rose 2.1 percent last week. Trading in
S&P 500 companies was about 26 percent below the 30-day average for
this time of day amid the Jewish new-year holiday.
Investors
remain confident the Fed will raise borrowing costs this year, even as
most bet the central bank will not increase rates at its Sept. 16-17
meeting. Traders are pricing in a 26 percent chance of action on
Thursday, down from 48 percent before China’s currency devaluation last
month. Odds of a move at the December gathering are about 59 percent,
according to data compiled by Bloomberg.
Chinese
stocks slumped the most in three weeks after data added to concern that
the country’s economic slowdown is deepening. Industrial output missed
economists’ forecasts, while investment in the first eight months
increased at the slowest pace since 2000.
Market
swings and rapid shifts in investor sentiment have become more
prevalent as uncertainty on the impact of China’s slowdown coupled with
the Fed’s looming rate decision to whipsaw equities. For the ninth time
in a row, the S&P 500 posted a weekly return that amounted to a
reversal of the prior week’s performance. Such a streak of alternating
gains and losses has happened only three times in 20 years, according to
data compiled by Bloomberg.
Souce: Bloomberg
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