U.S. stocks fell, pulling the Standard & Poor’s 500 Index down from a two-month high, as the White House said it would veto a Republican budget plan and housing starts decreased.
“Markets continue to be very much focused on fiscal cliff resolution,” Ryan Larson, the Chicago-based head of U.S. equity trading at RBC Global Asset Management (U.S.) Inc., said in an interview. His firm oversees $250 billion. “The move over the last few days has been supported by optimism that a deal will be reached by year-end. However, so far today we’re seeing a bit of caution as Congressional leaders remain at different ends on several key issues.”