U.S. Stocks Trim Losses as Fed Minutes Show Support for Easing
U.S. stocks trimmed losses as minutes from the Federal Reserve’s last meeting showed many policy makers favored more monetary easing soon.
The Standard & Poor’s 500 Index was down less than 0.1 percen t at 1,412.63 at 2:02 p.m. in New York. The gauge was down about 0.4 percent before the release of the minutes at 2 p.m. in Washington.
“Many members judged that additional monetary accommodation would likely be warranted fairly soon unless incoming information pointed to a substantial and sustainable strengthening in the pace of the economic recovery,” according to the record of the Federal Open Market Committee’s July 31- Aug. 1 gathering released today in Washington.
The S&P 500 has rebounded as much as 12 percent from a five-month low in June and yesterday climbed to its highest level in four years before erasing gains and ending the session lower.
The rally has been driven by Europe’s efforts to fight its debt crisis, better-than-forecast economic data and speculation that central banks will provide more stimulus if needed to safeguard the global recovery.
Earlier declines in stocks today were triggered after a slump in Japan’s exports spurred concern about global demand.
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