New York -U.S. stocks declined sharply on Wednesday after the Federal Reserve’s forecast of fewer interest-rate increases in 2019 fell short of investors’ hopes of a more dovish monetary policy.
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The Dow Jones Industrial Average fell 351.98 points, or 1.49 percent, to 23,323.66, the S&P 500 lost 35.48 points, or 1.39 percent, to 2,510.68, and the Nasdaq Composite dropped 140.80 points, or 2.08 percent, to 6,643.11.
The Fed’s Federal Open Market Committee said in a statement following a two-day policy meeting that risks to the economy were “roughly balanced,” but it would “continue to monitor global economic and financial developments and assess their implications for the economic outlook.”
Investors said Fed Chairman Jerome Powell’s remarks in a news conference following the committee’s statement that he did not see the central bank changing its policy of keeping its balance sheet run-off on “autopilot” raised concerns of tightening financial conditions placing further strain on financial markets.
“Powell is steadfast in his commentary today that he doesn’t see any tightening that stems from the unwinding of the balance sheet,” said Quincy Krosby, chief market strategist at Prudential Financial in Newark, New Jersey. “The market message is we are seeing tighter financial conditions and a weaker path for growth.”
How is educated fake accounting on Obama vs Trump Stock Market doing now?
Under the stable genius who’s a graduate of Wharton the stock markets have certainly had dramatic changes. I predict as they lose assets many Republicans will become Democrats.
Since the day the democrats won the mid terms the market has been heading south. Coincidence? I think not.
After years of interest rate cuts under obama the fed is finally raising rates, which is a sure sign of a strong economy. Thank you president Trump.
You need to see how things are the next 2 quarters. If there is a China deal, even one that isn’t great, that could boost the market
Same with infrastructure deal