(MENAFN- ProactiveInvestors) U.S. stocks reversed course late Monday amid a last-minute selloff erasing the day's earlier gains as traders digested comments from Fed vice chairman Stanley Fischer and worse-than-expected existing home sales data.
At the closing bell in New York the Dow Jones Industrial Average settled down 12 points at 18116 while the S&P 500 edged down 4 points to end at 2104. The Nasdaq fell 15 points to finish at 5011 dragged down by biotech stocks.
The losses come after a solid week for markets following the Fed's dovish policy statement which eased investor worries about higher interest rates. The Dow and the S&P 500 came off their first weekly gains in the past four weeks after the Fed's latest statement.
On the economic calendar today existing home sales bounced 1.2% higher in February to a 4.88 million annual pace above January's 4.82 million but still not that strong. Economists were expecting a 4.94 million annual pace.
Traders also took in comments from the ’s vice-chair Stanley Fischer who said that a rate hike is likely warranted this year. Fisher spoke at noon saying that the US central bank expects to raise short-term rates this year but only according to "a wide range of information regarding labor market conditions inflation and financial and international developments."
Moreover the Fed’s vice-chair said that rates would be adjusted "up and down" according to the economy’s performance.
European equities mostly closed down today as investors watched a meeting between the leaders of Greece and Germany during a week that could spell the fate of Greece's future in the eurozone. If a deal is not reached the country is likely to run out of cash by early next month.
Asian stocks meanwhile extended a six-month high on Monday as Japanese shares soared despite a stronger yen while the Shanghai Composite recorded its ninth straight day of gains. The advance comes on the heels of the dollar's worst week since October 2011.
Oil prices closed at a two week high gaining from a weaker dollar despite Saudi Arabia’s announcement that it would maintain current production levels. West Texas Intermediate for May delivery tacked on 1.9% to settle at $47.45 a barrel on the New York Mercantile Exchange. Gold for April delivery on the Comex rose 0.3% to settle at $1187.70 an ounce on Comex.
In corporate activity New York State's financial service regulator has reportedly joined a list of regulators investigating () for the alleged rigging of Libor. The bank is one of the few European financial institutions that has yet to reach a settlement with prosecutors. Reports over the weekend also say that the bank will probably spin off its consumer bank to help it meet capital requirements.
() closed just under 5% higher on news the company is creating a $2.6 billion joint venture with United Surgical Partners International which operates more than 200 short-stay surgical facilities.
Shares of () climbed 16.8% after the biotechnology company announced a deal to license its anticancer therapeutics delivery technology for up to two targets exclusively to Japan's Takeda Pharmaceutical.
Meanwhile () dropped almost 2% after the drug maker late Friday warned health care providers that nine patients taking its Hep C drugs along with the heart treatment amiodarone developed abnormally slow heart beats with one dying of a heart attack.
Biogen Idec () also fell 2.5% after being downgraded to hold from buy by analysts at Stifel Nicolaus.
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