U.S. stocks dropped while the dollar strengthened as data on consumer prices showed signs inflation is perking up. Treasuries advanced after the sale of two-year notes was characterized as good by firms obligated to bid.

The Standard & Poor’s 500 Index lost 0.6 percent at 4 p.m. in New York, its 25th day without consecutive gains, the longest stretch since 2001. The Nasdaq Composite Index erased earlier gains to finish lower by 0.3 percent. The Stoxx Europe 600 Index climbed 0.4 percent. The Bloomberg Dollar Spot Index added 0.2 percent. The yield on 10-year Treasuries fell four basis points to 1.87 percent. U.S. crude added 6 cents to settle at $47.51 a barrel. Gold rose to a two-week high while copper increased for a fourth day.

The cost of living in the U.S. climbed 0.2 percent in February, as fuel costs stabilized. Fed policy makers are looking for inflation to accelerate and close in on their 2 percent target as they weigh the timing of the first rate increase since 2006. Purchases of new homes in the U.S. unexpectedly rose in February to a seven-year high. A $26 billion sale of two-year notes was rated a ‘4’ by five of the Fed’s primary dealers.

Source : Bloomberg