Markets fell on Tuesday, with the Standard & Poor’s 500 Index losing 0.4 percent while gold, silver and oil all lost more than 1 percent.
The sell-off was attributed to reduced expectations for further monetary stimulus from the Federal Reserve after the release of the minutes from the last FOMC meeting, which showed members expressing decreased urgency for such stimulus.
US economic data on Tuesday added to signs that the economy is in little need of further stimulus. Factory orders rebounded 1.3 percent in February, reversing January's 1.1 percent fall, while auto sales rose 13 percent in March, completing the best quarterly sales rate since 2008.
Indeed, in view of the recent relatively strong US data, a Bloomberg report suggests that the US economy may be entering a sweet spot.
The U.S. once again may be emerging as a main engine for global growth -- and at an opportune time, as Europe slides into recession and China’s economy decelerates...
“We’re entering a sweet spot for the economy,” said Allen Sinai, president of Decision Economics Inc. in New York. “We’re in a self-reinforcing cycle,” where faster employment growth leads to higher household income and increased consumer spending.