Wall Street tumbling after Fed decision
US stocks fell on Wednesday, with the S&P 500 extended loses after
the Federal Reserve said it had a weaker growth outlook for the economy, even maintaining the same stimulus program.
Trading was volatile following the release of the statement,
with the major US
stock indexes cutting losses to turn flat and dropping to session lows. Almost
70 percent of stocks on both the New
York Stock Exchange and Nasdaq declined, while all
10 S&P
500 sector
indexes fell.
The Dow Jones industrial average slipped 61.59 points, or
0.39 %, while Standard & Poor's 500 Index dropped 8.64 points, or 0.49 %,
to finish at 1,763.31. The Nasdaq Composite Index fell 21.72 points, or
0.55 %.
Many analysts expect the Fed to delay until at least March 2014
in easing the stimulus measures that has encouraged investors to buy riskier
assets, like stocks, contributing to the S&P 500's gain of more than 20 % this
year.
Private-sector employers (ADP) declined to the lowest level in
six months in October, according to a report released on Wednesday, while the US consumer
price index (CPI) showed a decline. So both indicators supported the Fed's
stimulus policy.
With $ 24 billion of losses due the “Government
Shutdown ", a growth forecast of 2.4 % for the
fourth quarter, the consumer confidence index dropped from 80.2 to 71.2 in October, and especially with a stop fighting
between Republicans and Democrats who
may be held until early 2014 , we can
expect a new American crisis which will drag the economy into the depths.
