U.S. stocks extended losses after minutes from the Federal Reserve’s latest policy meeting showed central bankers saw no need for more monetary stimulus unless economic growth slows. Treasuries and gold tumbled and the dollar rallied.
The Standard & Poor’s 500 Index lost 0.8 percent to 1,407.82 at 2:09 p.m. in New York. The Dow Jones Industrial Average decreased 100.93 points to 13,163.56. Yields on 10-year Treasury notes climbed four basis points to 2.22 percent after falling as much as three basis points. The Dollar Index, a gauge of the currency against six major peers, climbed 0.4 percent. Cocoa, gold, sugar and oil lost more than 1 percent to lead the S&P GSCI Index of commodities down 0.5 percent.
Minutes from the March 13 Fed policy meeting showed the central bank is holding off on increasing monetary accommodation unless the U.S. economic expansion falters or prices rise at a rate slower than its 2 percent target.
“A couple of members indicated that the initiation of additional stimulus could become necessary if the economy lost momentum or if inflation seemed likely to remain below” 2 percent, according to the minutes released today in Washington.
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