NEW YORK: US stocks fell Tuesday, with commodities producers among the biggest losers as hawkish commentary from two Federal Reserve officials lifted the dollar.
US monetary policy was back in focus after the presidents of the Cleveland and Richmond branches of the Fed both argued the need for the Fed to soon lift interest rates in light of growth and inflation trends.
The comments helped boost the dollar, denting commodities traded in the US currency, including oil, copper and gold. Dow members ExxonMobil and Chevron both lost about one percent, while Barrick Gold and Newmont Mining plunged 11.2 percent and 10.1 percent, respectively.
The Dow Jones Industrial Average lost 0.5 percent at 18,168.45.
The broad-based S&P 500 shed 0.5 percent to 2,150.49, while the tech-rich Nasdaq Composite Index dropped 0.2 percent to 5,289.66.
Banking shares were mostly higher on raised expectations for a Federal Reserve interest rate increase, helped by the comments from the Fed policy-makers. JPMorgan rose 0.9 percent, Bank of America 1.1 percent and Citigroup 1.5 percent.
