Everything Is Heading Lower After Surprisingly Strong Manufacturing Data

Ben bernankeREUTERS/Larry DowningBen Bernanke, chairman of the Federal Reserve.

The release of
unexpectedly strong manufacturing datafrom the Institute of Supply Management at 10 AM has sparked a bit of a sell-off in stocks, Treasuries, and gold, illustrating just how on edge market participants are about when the Federal Reserve will begin tapering quantitative easing.

The S&P 500 just went negative and is now trading down 0.1% at 1755 — more than 10 points off the highs made earlier this morning.

Meanwhile, the losses in Treasuries are deepening. 10-year U.S. Treasury futures are down 0.4%, and the yield on the 10-year Treasury note is trading at 2.60%, 5 basis points above yesterday’s close.

Gold is down 1.3%, trading just below $US1307 an ounce.

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