Stocks extend losses after Fed cuts bond purchases
NEW YORK (AP) — Stocks are extending their losses on Wall Street after the Federal Reserve further reduced its economic stimulus.
The market was already lower Wednesday following disappointing results from Yahoo, Boeing and other U.S. companies and ongoing worries about emerging-market economies like Turkey and South Africa.
The Fed said it would make more cuts to its huge bond-buying program. The purchases have been credited with keeping interest rates ultra-low and helping to drive stock prices higher.
The Dow Jones industrial average fell 159 points, or 1.2 percent, to 15,739 as of 2:25 p.m. (1925 GMT). It was down as much as 220 points in afternoon trading.
The Standard & Poor’s 500 index lost 15 points, or 0.9 percent, to 1,777. The Nasdaq composite fell 36 points, or 0.9 percent, to 4,061.