24 Mar 2016

Dollar Gains, U.S. Stocks Fall as Oil, Gold Tumble

The U.S. currency extended a four-day advance as traders bet the Federal Reserve is preparing to raise interest rates at every meeting where economic data allows for tighter monetary policy.

Energy producers led declines in the Standard & Poor’s 500 Index, which fell for the first time in two weeks and drove the Russell 2000 Index down 2 percent.

A rebound that poised to turn the S&P 500 green was reversed as raw materials extended losses, with the Bloomberg Commodity Index posting its worst two-day drop in two months.

Emerging-market stocks also retreated after a five-day rally, and gold tumbled more than 2 percent.

"The big story the last couple of months has been the loss of confidence and then the regain of confidence, and the market continues to struggle with the implications of what the Fed is going to do," said Brad McMillan, chief investment officer for Commonwealth Financial Network in Waltham, Massachusetts.

The U.S. dollar advanced for a fourth day versus the euro, according to the Bloomberg Dollar Spot Index. The greenback rose 0.7 percent in New York against a basket of 10 currencies.

The dollar also gained against all but two of 16 major peers, climbing 0.3 percent to $1.1183 per euro and adding 0.1 percent to 112.42 yen.