U.S. stocks fell, sending the Dow Jones Industrial Average to its biggest two-day loss in a year, as energy shares plunged and the Federal Reserve cited international risks to the American economy amid concerns about weakness in multinational earnings.
Energy companies slumped 3.9 percent as a group after oil retreated. Apple Inc. climbed 5.7 percent after reporting a record $18 billion in quarterly profit, one of the biggest in corporate history. Boeing Co. advanced 5.4 percent as it posted a quarterly profit that beat analysts™ estimates.
The Standard & Poor™s 500 Index fell 1.4 percent to 2,002.24 at 4 p.m. in New York. The Dow Jones Industrial Average lost 192.88 points, or 1.1 percent, to 17,194.33. The gauge fell 2.8 percent over two days. The Nasdaq 100 Index dropped 0.6 percent, erasing an earlier rally of 1.7 percent. The Chicago Board Options Exchange Volatility Index, known as the VIX, added 17 percent to 19.09, its biggest jump of the year.
The Fed also boosted its assessment of the economy and labor market, even as it expects inflation to decline further.
Fed officials are confronting divergent economic forces as they weigh the timing of the first interest-rate increase since 2006. Surprisingly strong job gains argue for tightening sooner, while inflation held down by a plunge in oil prices and a cooling global economy provides grounds for delay.
Source : Bloomberg