Stocks fall, endangering 2nd week of gains
NEW YORK — Wall Street pulled back today as traders collected some profits and sent financial shares down again.
After starting the day mixed, stocks veered lower in the afternoon, threatening what would be the market's first two-week gain in close to a year.
The relatively quiet pullback followed double-digit gains since last week, which in less vexing times might have been the kind of advances the market could see over the course of an entire year.
Today's calm could be tied to a mixture of exhaustion and caution. The Fed jolted the market this week with an announcement of plans to buy hundreds of billions of dollars worth of debt securities in hopes of reviving lending.
Stocks initially jumped on Wednesday when the plans were announced but then fell back on Thursday as investors became concerned that the huge injection of money into the economy could cause inflation.
Other markets showed big moves during the week as well. In just two days, the dollar fell 5 percent versus the euro and 3 percent versus the yen. Oil prices soared 7 percent Thursday above $51 a barrel to the highest level this year.
Many analysts believe stocks were due for a pullback after the Dow Jones industrial average rose more than 14 percent over seven trading days. Considering how much the market has rallied, it appears to be holding up well.
