NEW YORK, N.Y. – Stocks are pulling back from record levels as investors bet that faster growth in the U.S. would increase the likelihood that the Federal Reserve will curtail its economic stimulus program.
The U.S. economy expanded at an annual rate of 2.8 per cent in the third quarter, up from 2.5 per cent the previous quarter. That made investors think the Fed could start cutting back its stimulus next month, sooner than many expected.
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The Dow Jones industrial average was down 33 points, or 0.2 per cent, at 15,712 as of noon Eastern time Thursday. It was up 50 points earlier.
The Standard & Poor’s 500 stock index gave up eight points, or 0.5 per cent, to 1,761. The Nasdaq composite fell 44 points, or 1.1 per cent, to 3,886.