European stocks fell and U.S. equities resumed a selloff as concern deepened over signs of financial stress in Portugal. Treasuries, the yen and gold gained as investors sought safety.
U.S. stocks declined a fifth day after improving economic data boosted bets the Federal Reserve will curb its monthly bond purchases sooner than estimated.
The Standard & Poor’s 500 Index rose following its first three-day slump since September, while gasoline and oil rallied and gold and silver slid. Emerging market stocks fell as a gauge of Chinese manufacturing missed estimates and the Federal Reserve said it may reduce stimulus.
Even with the flawed roll out of health-care reform and uproar over spying, Barack Obama is enjoying one of the best stock markets for a re-elected president. Signs are building that it might not last.
U.S. stocks fell, after the Standard & Poor’s 500 Index rose the most in almost two weeks, as a private jobs report showed companies added fewer jobs than forecast and the government shutdown entered a second day.
Treasuries fell as stronger growth in American service industries dimmed prospects for Federal Reserve bond buying, while U.S. benchmark stock indexes retreated from records.
More than $500 billion wiped off the value of U.S. stocks is providing opportunities for investors who remember that equities tend to rise when the Federal Reserve begins reducing efforts to stimulate the economy.
