U.S. stocks fluctuated after erasing earlier gains, while Treasures slid with gold before the Federal Reserve’s decision on interest rates. European stocks fell amid signs the impasse in Greek aid talks was deepening.
The Standard & Poor’s 500 Index dropped 0.1 percent at 12:37 p.m. in New York, wiping out an earlier 0.4 percent advance. Treasuries fell, sending 10-year yields 6 basis points higher to 2.37 percent. The Stoxx Europe 600 Index lost 0.5 percent. Gold futures retreated 0.4 percent. Oil reversed gains after an inventory report.
Fed Chair Janet Yellen will conclude a two-day meeting of her board Wednesday amid speculation mixed U.S. economic data and Greece’s deadlocked debt negotiations will complicate the central bank’s drive to raise interest rates. Greece needs to seal a deal before the euro area’s bailout expires on June 30, or risk missing payments on its debt of about 313 billion euros ($352 billion).
The U.S. central bank meets as data continues to show uneven gains in the economy after a first-quarter slowdown. A report Tuesday indicated builders began work on fewer houses in May following a surge the prior month. That followed a disappointing factory report on Monday that pushed stocks lower.