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U.S. stocks decline in early trade

TradingPub Admin | July 29, 2013

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U.S. stocks fell in value early in the trading day, as global market participants were impacted by speculation surrounding a coming meeting of the Federal Reserve.

The S&P 500 did not have a good start to the day, as by 10:04 a.m., the benchmark group of stocks was 0.2 percent lower at 1,687.99, according to Bloomberg. The Dow Jones Industrial Average was also doing poorly, trading 0.2 percent lower at 15,523.47.

The benchmark S&P 500 Index has risen more than 5 percent so far in July, and has surged 150 percent since reaching its recent bottom on March 2009, the media outlet reports.

One major factor that is of substantial importance to global investors is the Fed speech that is scheduled to be given on July 31, according to Reuters. The future plans that the central bank has for quantitative easing have been cited as having a significant influence on the asset markets.

Ramin Nakisa, an asset allocation strategist at UBS AG in London, noted the importance of the future tapering of Fed bond purchases when speaking with Bloomberg during an interview. He noted that interest rates will increase, but that risk tolerance will go up as well.

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