The S&P 500 is trading down about 0.6% in early dealing after a WSJ report prompted the market to trim expectations of a big “shock and awe” QE program from the Fed.
Commodities are seeing profit-taking as a result and US yields continue to ratchet higher.
Copper is particularly hard-hit this morning, down 2.1%. The CRM index is down a more muted 0.7%. All these measures have been highly correlated with the dollar in recent months, so USD strength should see continued profit-taking in commodities and equities.