U.S. stocks fell as a rout in commodities pressured energy and raw-materials providers while investors braced for the first rise in interest rates since 2006.
Chevron Corp. dropped 2.9 percent and Freeport-McMoRan Inc. tumbled 6.2 percent as the stronger dollar and a persistent slump in demand from China sent the Bloomberg Commodity Index to the lowest since 1999. Equities slipped to session lows after Fed Bank of New York President William C. Dudley said conditions for raising rates may soon be satisfied.
The Standard & Poor’s 500 Index fell 1 percent to 2,054.53 at 12:23 p.m. in New York, slipping below its average price during the past 200 days. The U.S. equity benchmark has struggled to hold gains after rallying to within 1 percent of a record on Nov. 3. The Dow Jones Industrial Average lost 209.46, or 1.2 percent, to 17,492.76. The Nasdaq Composite Index declined 0.6 percent.