S&P 500 ends below 1,700 on jitters over Fed taper

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NEW YORK (MarketWatch) — U.S. stocks extended losses into a second day Tuesday as Federal Reserve official Charles Evans said the economy should be able to shoulder reduced Fed asset purchases later this year.

“It’s more of this taper tempest that we seem to go into. The market gets a little confused; it seems fine as long as the talk around taper is around data, but it gets flustered when you talk about the calendar,” said Jim Dunigan, managing executive for investments at PNC Wealth Management.

“There appears to be a lot on our plates as we get into fall season, with budget talks, a new Fed chair and the debt ceiling, which might lead the market to churn here a bit,” said Dunigan, who added that the market has reached an inflection point, given its “fairly significant upside performance,” with the S&P 500 up 19% so far this year.

After falling 139 points, the Dow Jones Industrial Average DJIA -0.60%  shed 93.39 points, or 0.6%, to end at 15,518.74, with International Business Machine Corp.IBM -2.31% leading the decline that included 24 of the Dow’s 30 components.

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