U.S. stocks declined for a second day after holiday spending in America slowed and gauges of manufacturing in China and Germany dropped. Oil rebounded from the lowest in five years and gold rallied.
The Standard & Poor’s 500 Index rose after the worst week in more than two years and European bonds gained with equities after Portugal announced a bailout for Banco Espirito Santo SA.
U.S. stocks dropped from a record, led by declines in small-cap companies, as analysts brought forward estimates for the Federal Reserve to raise interest rates. Commodities slumped as oil and metals retreated.
U.S. stocks dropped as data showed consumer spending grew less than forecast in May and a Federal Reserve official said interest rates may rise by March. Treasuries climbed with emerging-market equities and oil slid.
