The Standard & Poor’s 500 Index tumbled the most in more than a month as the possibility that the Federal Reserve will raise interest rates as early as December weighed on equities.
Investors had shrugged off the threat of higher rates on Friday, focusing instead on a robust jobs report that signaled the U.S. economy may be ready to withstand tighter monetary policy. That sentiment reversed Monday in the absence of any additional data and after American equities ended last week near the highest level in three months.
The S&P 500 slipped 1 percent to 2,078.66 at 4 p.m. in New York, the most since Sept. 28 and its fourth straight drop. The Dow Jones Industrial Average lost 178.78 points, or 1 percent, to 17,731.55. The Chicago Board Options Exchange Volatility Index jumped 14 percent, its biggest increase since September.
The day’s selloff was broad-based. Multinationals with exposure to a stronger dollar were hit hard, with Caterpillar Inc. sliding 2.7 percent. Macy’s Inc. and Kohl’s Corp. led retailers lower. Mallinckrodt Plc plummeted 17 percent after the drugmaker was mentioned by the stock-commentary site whose scrutiny helped lead to a rout in Valeant Pharmaceuticals International Inc.