Investing.com - U.S. stocks closed slightly lower on Monday after a Federal Reserve official hinted that the stimulus measures may begin tapering off soon.
Stimulus measures, such as the Fed's monthly USD85 billion bond-buying program, weaken the dollar by flooding the economy full of liquidity to keep interest rates low and encourage investing and hiring, which sends stocks rising as a side effect.
At the close of U.S. trading, the Dow Jones Industrial Average finished down 0.12%, the S&P 500 index ended down 0.07%, while the Nasdaq Composite index also fell 0.07%.
Federal Reserve Bank of Chicago President Charles Evans said earlier that bond-buying will continue until substantial improvements become evident in the labor market, though he later downplayed those comments and left markets interpreting that a scale back may begin in the coming months.
Other Federal Reserve officials suggested last week that the U.S. central bank may begin to unwind stimulus programs this summer and possibly end such policies by year end.
Fed Chairman Ben Bernanke is due to appear in Congress on Wednesday, though on Monday, many investors began to bet that the country's top central banker may hint at a need to wind down stimulus programs or make no new mention of it, which allowed stocks to decline slightly.
Leading Dow Jones Industrial Average performers included Alcoa, up 1.86%, American Express, up 1.50%, and Chevron, up 1.11%.
The Dow Jones Industrial Average's worst performers included Merck, down 1.70%, Coca-Cola, down 1.35%, and Cisco Systems, down 1.20%.
European indices, meanwhile, finished higher.
After the close of European trade, the EURO STOXX 50 rose 0.23%, France's CAC 40 rose 0.54%, while Germany's DAX 30 finished up 0.69%. Meanwhile, in the U.K. the FTSE 100 finished up 0.48%.
Stimulus measures, such as the Fed's monthly USD85 billion bond-buying program, weaken the dollar by flooding the economy full of liquidity to keep interest rates low and encourage investing and hiring, which sends stocks rising as a side effect.
At the close of U.S. trading, the Dow Jones Industrial Average finished down 0.12%, the S&P 500 index ended down 0.07%, while the Nasdaq Composite index also fell 0.07%.
Federal Reserve Bank of Chicago President Charles Evans said earlier that bond-buying will continue until substantial improvements become evident in the labor market, though he later downplayed those comments and left markets interpreting that a scale back may begin in the coming months.
Other Federal Reserve officials suggested last week that the U.S. central bank may begin to unwind stimulus programs this summer and possibly end such policies by year end.
Fed Chairman Ben Bernanke is due to appear in Congress on Wednesday, though on Monday, many investors began to bet that the country's top central banker may hint at a need to wind down stimulus programs or make no new mention of it, which allowed stocks to decline slightly.
Leading Dow Jones Industrial Average performers included Alcoa, up 1.86%, American Express, up 1.50%, and Chevron, up 1.11%.
The Dow Jones Industrial Average's worst performers included Merck, down 1.70%, Coca-Cola, down 1.35%, and Cisco Systems, down 1.20%.
European indices, meanwhile, finished higher.
After the close of European trade, the EURO STOXX 50 rose 0.23%, France's CAC 40 rose 0.54%, while Germany's DAX 30 finished up 0.69%. Meanwhile, in the U.K. the FTSE 100 finished up 0.48%.