Rally fades after S&P 500 hits high point

The Standard & Poor's 500 index touched its highest point in more than four years Tuesday, helped by more talk that the European Central Bank may buy struggling countries' bonds. But a morning rally faded, and stocks ended lower.

The S&P 500 lost 0.35 percent to close at 1,413.17. Earlier in the day, the S&P climbed to 1,426, its highest since May 19, 2008.

Clark Yingst, chief market analyst at the securities firm Joseph Gunnar, said he thought traders were swayed by reports that the ECB may buy bonds to bring down the borrowing costs of Spain, Italy and other countries.

Yingst pointed to currency moves and bank stocks as evidence. JPMorgan Chase, Morgan Stanley and other companies with ties to Europe rose more than the overall market. The euro surged 1 percent to $1.246.

"It's very much a news -- and rumor -- driven market," Yingst said.

In other trading, the Dow Jones industrial average fell 68.06 points to 13,203.58, and the Nasdaq composite index lost 0.29 percent to 3,067.26.

Sean Clark, chief investment officer at Clark Capital Management Group, said part of the explanation for the stock market's steady climb this month is that money managers are afraid of missing out on the rally.

-- AP