U.S. stocks fell the most in three weeks, as better-than-forecast economic data and comments by Federal Reserve officials bolstered bets for an interest-rate increase this year.
Energy and raw-material companies retreated as the dollar jumped, while Apple Inc. and Intel Corp. paced a drop in technology shares. Hewlett-Packard Co. decreased 3.5 percent. Time Warner Cable Inc. added 4.9 percent after Charter Communications Inc. agreed to buy the cable provider for about $ 55 billion in cash and stock. Cablevision Systems Corp. climbed 2 percent.
The Standard & Poor’s 500 Index declined 0.9 percent to 2,106.01 at 12:17 p.m. in New York, after its third straight weekly advance. The Dow Jones Industrial Average sank 179.87 points, or 1 percent, to 18,052.15. The Dow ended a six-session stretch without a 100-point intraday swing, the longest in almost a year. The Nasdaq Composite Index lost 1.1 percent.
A better-than-forecast increase in capital goods orders and new-home sales come after Federal Reserve Chair Janet Yellen indicated the central bank will raise borrowing costs this year if the economy improves as she expects. Fed Bank of Cleveland President Loretta Mester echoed her comments on Monday, saying the U.S. economy is close to the point where it can support higher rates.
Fed Vice Chairman Stanley Fischer said central bankers are weighing the risk of raising them prematurely against the danger of having to play catch-up if they wait too long.
Source : Bloomberg