Stimulus Bets Send S&P to Biggest About-Face Since 2011 The U.S. stock market can’t seem to make up its mind. After plunging 1.5 percent on Oct. 7 and rallying almost 1.8 percent yesterday, the Standard & Poor’s 500 Index (SPX) dropped 2.1 percent at 4 p.m. in New York today, the biggest turnaround in almost three years. As investors weigh the prospect of slower economic growth overseas against the benefit of U.S. interest rates staying near zero, a measure of 10-day volatility has risen to the highest level since April, data compiled by Bloomberg show. Equities slumped today amid concern over Europe’s economy, erasing yesterday’s rally, which came after minutes from the Federal Reserve’s last meeting suggested monetary policy may remain accommodative if the global economy falters. The measure is 4.1 percent below its all-time closing high of 2,011.36 reached Sept. 18 as investors assess concerns from valuations to oil prices and growth in Europe. Related: Don’t Treat Small-Cap Stocks Like a Fashion Statement “A lot of folks are finding gains difficult to come by so they’re keeping positions, long or short, on a tight leash,” Jordan Irving, co-founder of Conshohocken, Pennsylvania-based Irving Magee Investment Management, said in a phone interview. The firm manages $220 million in assets. “The [...] newsintx/stimulus-bets-send-sp-to-biggest-about-face-since-2011/
Posted on: Fri, 10 Oct 2014 05:40:29 +0000
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