Stocks fell today, sending the S&P 500 to its first three-day drop since June 12, while investors speculated on when the Federal Reserve will trim its bond purchases this year. ‚??We‚??re just going through a period of consolidation,‚?Ě Terry Sandven, chief equity strategist at U.S. Bank Wealth Management in Minneapolis, said. ‚??We still like the outlook for the broad equity market, but near term we‚??re probably in a trading range pattern until we get greater clarity as to what happens with quantitative easing.‚?Ě
Nikkei Plunges, Yen Climbs (CNBC)
As the yen reached a six-week high against the U.S. dollar, the Nikkei index fell a whopping four percent to finish below 14,000 Wednesday. “Talk of Japanese investors increasing currency hedges of their recently purchased foreign assets has been a key reason behind the JPY strength, while there are concerns that the pace of monetary velocity (the frequency at which money is spent on goods and services over a period of time) is falling,” said Evan Lucas, market strategist at IG.
U.S. and International Oil both suffered losses of nearly one percent Wednesday, driven lower by an expected increase in North Sea Oil Production and the possibility that the U.S. Federal Reserve may end it current policy of quantitative easing. Oil has steadily declined since Friday. “The market is choppy, it looks like we are still trying to consolidate between $103 and $108 a barrel after last month’s rally” said Gene McGillian, an analyst with Tradition Energy in Stamford, Connecticut.