- Stocks down because investors still worry because Fed is seen as moving toward reducing its$85 billion in monthly bond purchases, causing some investors to take a step back from stocks.
- Fed stimulus has helped fuel the S&P’s gain of nearly 19 percent in 2013.
- Some Fed officials have said the U.S. central bank could begin scaling back its quantitative easing next month if the economy continues to improve.
- Stocks also down because 90% of S&P companies that reported their earnings are on track for a 2.2% yearly profit growth vs the 3.4% reported in first Quarter (Q1) which shows the disappointing result, which giving investors little motivation to buy.
Categories: Equity Capital Markets