Investors Rattled as U.S. Dollar Rises Against Euro and Yen
A day after marking its sixth anniversary with a big gain, the bull market stumbled.
A sharp increase in the dollar's strength and lingering concerns about an interest-rate hike sparked a sell-off Tuesday that wiped out the major indexes' gains for the year.
Analysts said both the extent and the rapid pace of the dollar's recent rise rattled investors who feared that the dampening effect of a stronger greenback on American exports would interfere with the U.S. recovery.
At the same time, and maybe a bit paradoxically, investors remained concerned that the economy, despite the dollar, is becoming so strong that the Federal Reserve soon will be compelled to raise rock-bottom interest rates to head off inflation.
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