Investors today appeared to be having some second thoughts about Fed’s QE2 plan, as everything that rose in anticipation of the asset-buying program — stocks, Treasurys, the euro, oil, gold and a host of other commodities — retreat sharply. In fact, it was the theme all week.
Re-emergence of Euro-zone debt concerns, and some worries today about China moving to a tighter monetary stance are enough to turn some focus squarely back to fundamental factors. Oil, gold, Treasurys all hammered today, 10-yr note reaching highest yield in nearly two months.
Materials, financials and energy the hardest hit stock sectors. DJIA falls 90.52 to 11192.58, ends week down 2.2%. Nasdaq Comp falls 37.31 to 2518.21, and S&P 500 sheds 14.33 to 1199.21.
It’s the biggest weekly point and percentage drop for the major indexes since week ended August 13, and leaves stocks with a skinny gain for November.
Busy week for data coming up, featuring regional manufacturing reports from NY and Philly Feds; October retail sales; CPI, PPI; industrial production & capacity utilization; and housing starts.