The S&P 500 sank the most since June 2012 last week as a selloff in developing-nation currencies spurred concern global markets will become more volatile. Emerging-market stocks have had the worst start to a year since 2009 and currencies from Turkey to South Korea tumbled amid signs growth is slowing in China as the Federal Reserve prepares to review further stimulus cuts this week.

Home Sales

Purchases of new homes in the U.S. fell more than forecast in December, ending the industry’s best year since 2008 on a sour note. Sales decreased 7 percent to a 414,000 annualized pace, lower than any estimate of economists surveyed by Bloomberg, after a 445,000 rate in November that was weaker than previously calculated, the Commerce Department reported. For all of 2013, demand jumped 16.4 percent to 428,000, the most in five years.

Fed officials have been scrutinizing economic data to determine the timing and pace of any reductions to their stimulus. The central bank, which starts a two-day meeting tomorrow, decided at its December gathering to begin cutting its monthly bond purchases by $10 billion to $75 billion.

The meeting is the last for Chairman Ben S. Bernanke, as Janet Yellen takes over starting Feb. 1. The Fed stimulus has helped fuel a five-year bull market that has pushed the S&P 500 higher by 165 percent.

Eight companies on the S&P 500 report their financial results today. Of the 125 companies in the benchmark that posted earnings so far this season, 74 percent have beaten analysts’ estimates for profit and 68 percent have exceeded projections for sales, according to data compiled by Bloomberg.

Stocks in the S&P 500 probably increased their earnings per share by 6.6 percent in the fourth quarter of 2013 and their revenue by 2.6 percent, analysts’ estimates compiled by Bloomberg show.

The Chicago Board Options Exchange Volatility Index dropped 4.1 percent to 17.40. The gauge of S&P 500 options known as the VIX surged 46 percent last week, its biggest gain since May 2010.

Industry Movers

Seven out of 10 S&P 500 industry groups gained today as industrial companies rose the most, climbing 0.5 percent as a group.

Caterpillar rallied 6 percent to $91.33 after saying it will spend $10 billion buying back shares. The company also reported earnings of $1.54 a share, exceeding the average analyst estimate of $1.27, data compiled by Bloomberg show.

Construction equipment demand is helping Caterpillar to limit the damage from the slump in orders from mining companies that followed a decline in commodity prices.

AT&T advanced 0.3 percent to $33.53. The second-largest U.S. mobile-phone operator’s statement prevents it from making a takeover bid for Vodafone in the next six months. AT&T cannot buy a stake of 30 percent or more in the British company during that time under the U.K.’s rules on mergers and acquisitions.

Apple Results

Apple, the largest technology company in the world, climbed 1.5 percent to $554.16, after Cantor Fitzgerald LP said the company will give a “healthy” fiscal first-quarter earnings report. The Cupertino, California-based company should beat the average analyst estimate on revenue and earnings, the analyst said.

Cisco, the world’s biggest maker of networking equipment, dropped 0.9 percent to $22.01. The San Jose, California-based company had its rating cut to underweight from neutral by JPMorgan Chase & Co., which said the stock valuation is high compared with the earnings potential.

Liberty Global Plc slipped 1.7 percent to $81.84 after the company controlled by billionaire John Malone agreed to take over Dutch broadband provider Ziggo NV for 4.9 billion euros ($6.7 billion). Liberty will combine Ziggo’s 2.7 million customers with its UPC cable unit as it competes with Dutch carrier Royal KPN NV.