Posted on 06/12/2013 1:07:59 PM PDT by Signalman
* VIX up over 8 pct as anxiety rises over central banks' policies
* S&P consumer and financial sectors lead the decline
* Dow off 0.8 pct; S&P 500 down 0.8 pct; Nasdaq off 1.1 pct
NEW YORK, June 12 (Reuters) - U.S. stocks fell on Wednesday, with the Dow tumbling more than 100 points on a wildly volatile day as traders extended a selloff driven by concern about the winding down of central banks' stimulus measures.
The S&P 500 was caught between support near its 50-day moving average and resistance at the 14-day moving average. The S&P 500 has closed below its 50-day moving average only once this year - in mid-April.
Traders have kept their focus on the possibility that the Federal Reserve will reduce its monthly bond purchases in coming months, removing one of the pillars of the U.S. stock market's rally this year.
These worries have sparked volatility and triggered a pullback in stock indexes from historic highs.
The Dow on Wednesday moved more than 200 points for the seventh time in the past 15 trading days, going back to Fed Chairman Ben Bernanke's latest congressional testimony on May 22. At the time, he hinted that the Fed may begin to reduce its quantitative easing - consisting of $85 billion a month in bond purchases - in the coming months.
(Excerpt) Read more at cnbc.com ...
It’s probably continued fall out from the recent jobs data and other economic data.
So implement a Tobin Tax and start spending it on stimulus.
I’m sure that would make them REAL happy. /sarc
And 10yr bonds went up another 3 basis points.
the economic fundamentals were never there for the rise that equities got and Bernanke’s buys were not enough, over time, to prove they were ever more than that - Bernanke attempts to boost stocks to LOOK LIKE an improving economy that wasn’t
So people stop buying when you quit giving them money? Whodathunkit.
So “buying” our own national debt is a problem? Who knew?
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