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S&P 500 sees biggest selloff in more than 2 months
U.S. stocks sold off on Thursday after the European Central Bank unveiled further monetary stimulus measures that fell short of expectations. Meanwhile, Federal Reserve Chairwoman Janet Yellen reiterated that conditions were in place to begin normalizing interest rates. The S&P 500
SPX, -1.44% fell 29.88 points, or 1.4%, to 2,049.63, its biggest decline since Sep 28. The benchmark index turned negative for the year. The Dow Jones Industrial Average futures
DJIA, -1.42% dropped 251.74 points, or 1.4%, to 17,477.67. The Nasdaq Composite
COMP, -1.67% ended the session down 85.70 points, or 1.7%, to 5,037.53
U.S. stocks sold off on Thursday, pushing both the Dow industrials and the S&P 500 further into negative territory for the year, after the European Central Bank unveiled a smaller-than-expected expansion of its monetary stimulus program.
The drop came amid a sharp surge in the euro and a selloff in government bonds and European stocks, while Federal Reserve chief Janet Yellen once again signaled a U.S. interest-rate hike in mid-December.
The S&P 500 SPX, -1.44% fell 29.88 points, or 1.4%, to 2,049.63, its biggest decline since Sept. 28. The benchmark index turned negative for the year. The Dow Jones Industrial Average DJIA, -1.42% dropped 251.74 points, or 1.4%, to 17,477.67, further into negative territory for the year. The Nasdaq Composite COMP, -1.67% ended the session down 85.70 points, or 1.7%, to 5,037.53
Analysts described Thursday’s stock rout as a violent unwind of a crowded trade. See also: Beware the crowded central bank trade.
Investors had piled into the short euro/long European stocks trade, and quickly reversed the trade after the ECB’s announcement fell short of the market’s expectations, analysts said