Stocks Drop as Economic Data Outweigh Fed Remarks: Markets Wrap
- U.S. new-home sales fall by more than forecast as prices surge
- Evans, Quarles, Clarida say inflation rise likely transitory
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Stocks retreated as inflationary signals from the latest economic reports overshadowed dovish reassurances from several Federal Reserve officials. Treasuries climbed.
The S&P 500 fluctuated throughout most of the trading session after a gauge of new U.S. home sales slid by more than forecast as higher prices restrained demand. Separate figures showed that consumer confidence slipped for the first time this year, with inflation concern and elevated unemployment likely curbing improvement in sentiment. Meanwhile, Fed Vice Chair Richard Clarida said price pressures would “prove to be largely transitory.”