US stocks fell yesterday as investors dialed back expectations of how aggressively the Fed would act to stimulate the economy.
With the uncertain outcomes of the US elections and a Fed meeting next week, traders positioned themselves for more volatile markets. The CBOE Volatility index rose 2.4 per cent and was up for the third consecutive day. Materials stocks, which have rallied in recent weeks on expectations of heavy stimulus, were the day’s biggest decliners. The S&P Materials index lost 0.9 per cent. Among the materials sector’s biggest percentage decliners, Freeport McMoRan Copper & Gold slumped 2.8 per cent to $95.50, and AK Steel dropped 3.4 per cent to $12.40. The Dow Jones industrial average dropped 43.18 points, or 0.39 per cent, to 11,126.28. The Standard & Poor’s 500 Index lost 3.19 points, or 0.27 per cent, to 1,182.45. But the Nasdaq Composite Index gained 5.97 points, or 0.24 per cent, to 2,503.26.