Investing.com - U.S. stocks fell on Tuesday amid ongoing uncertainty as to when the Federal Reserve will begin tapering the pace of its USD85 billion in monthly asset purchases, which boost stock prices by driving down borrowing costs.
Stocks saw support earlier on expectations for U.S. and Iranian tensions to continue thawing.
At the close of U.S. trading, the Dow Jones Industrial Average finished down 0.43%, the S&P 500 index fell 0.26%, while the Nasdaq Composite index rose 0.08%.
Stocks rose last week after the Federal Reserve left its USD85 billion monthly bond-buying program unchanged — many investors were expecting the U.S. central bank to trim the total by USD10 billion or more.
Asset purchases aim to spur recovery by driving down interest rates, boosting equities in the process.
While monetary authorities have not made it clear during various speeches in recent days as to when its bond-buying scheme may unwind, Wall Street concluded late Tuesday that the Fed remains on track to begin tapering its stimulus program in late October or early December.
Elsewhere Tuesday, the S&P/Case-Shiller index of property values in 20 U.S. cities increased by 12.4% on year in July, in line with already bullish market expectations, which cemented views that monthly asset purchases are set to unwind soon.
The Conference Board’s index of U.S. consumer confidence ticked down to 79.7 in September from 81.8 in August.
Analysts were expecting the figure to dip to 79.9.
Meanwhile at the United Nations General Assembly on Tuesday talk that U.S. President Barack Obama could possibly meet with his Iranian counterpart, Hassan Rouhani, even for just a handshake bolstered appetite for stocks earlier, especially by allaying fears that the U.S. might strike Iranian ally Syria for its alleged use of chemical weapons.
U.S. Secretary of State John Kerry is scheduled to meet with Iranian Foreign Minister Mohammad Javad Zarif on Thursday.
The meeting would mark the highest-level encounter between the two countries since 1979.
Thawing tensions between the West and Iran could eventually mean an end to oil sanctions slapped on the Middle East country and boost global supply, which could depress energy costs for many companies while allaying fears of war.
Leading Dow Jones Industrial Average performers included Boeing, up 1.31%, UnitedHealth Group, up 0.70%, and Nike, up 0.68%.
The Dow Jones Industrial Average's worst performers included JPMorgan Chase, down 2.10%, Verizon, down 1.48%, and Visa, down 1.40%.
European indices, meanwhile, finished higher.
After the close of European trade, the EURO STOXX 50 rose 0.56%, France's CAC 40 also rose 0.56%, while Germany's DAX 30 rose 0.34%. Meanwhile, in the U.K. the FTSE 100 finished up 0.21%.
On Wednesday, the U.S. is to release data on durable goods orders, a leading indicator of production, in addition to a report on new home sales.
Stocks saw support earlier on expectations for U.S. and Iranian tensions to continue thawing.
At the close of U.S. trading, the Dow Jones Industrial Average finished down 0.43%, the S&P 500 index fell 0.26%, while the Nasdaq Composite index rose 0.08%.
Stocks rose last week after the Federal Reserve left its USD85 billion monthly bond-buying program unchanged — many investors were expecting the U.S. central bank to trim the total by USD10 billion or more.
Asset purchases aim to spur recovery by driving down interest rates, boosting equities in the process.
While monetary authorities have not made it clear during various speeches in recent days as to when its bond-buying scheme may unwind, Wall Street concluded late Tuesday that the Fed remains on track to begin tapering its stimulus program in late October or early December.
Elsewhere Tuesday, the S&P/Case-Shiller index of property values in 20 U.S. cities increased by 12.4% on year in July, in line with already bullish market expectations, which cemented views that monthly asset purchases are set to unwind soon.
The Conference Board’s index of U.S. consumer confidence ticked down to 79.7 in September from 81.8 in August.
Analysts were expecting the figure to dip to 79.9.
Meanwhile at the United Nations General Assembly on Tuesday talk that U.S. President Barack Obama could possibly meet with his Iranian counterpart, Hassan Rouhani, even for just a handshake bolstered appetite for stocks earlier, especially by allaying fears that the U.S. might strike Iranian ally Syria for its alleged use of chemical weapons.
U.S. Secretary of State John Kerry is scheduled to meet with Iranian Foreign Minister Mohammad Javad Zarif on Thursday.
The meeting would mark the highest-level encounter between the two countries since 1979.
Thawing tensions between the West and Iran could eventually mean an end to oil sanctions slapped on the Middle East country and boost global supply, which could depress energy costs for many companies while allaying fears of war.
Leading Dow Jones Industrial Average performers included Boeing, up 1.31%, UnitedHealth Group, up 0.70%, and Nike, up 0.68%.
The Dow Jones Industrial Average's worst performers included JPMorgan Chase, down 2.10%, Verizon, down 1.48%, and Visa, down 1.40%.
European indices, meanwhile, finished higher.
After the close of European trade, the EURO STOXX 50 rose 0.56%, France's CAC 40 also rose 0.56%, while Germany's DAX 30 rose 0.34%. Meanwhile, in the U.K. the FTSE 100 finished up 0.21%.
On Wednesday, the U.S. is to release data on durable goods orders, a leading indicator of production, in addition to a report on new home sales.