Stocks end lower but post gains for October
While it was a second consecutive day of losses for the market, all three major indexes ended October with solid gains.
The U.S. central bank on Wednesday said it will keep buying $85 billion of bonds per month, citing weaker economic signals, but it removed a phrase from a previous statement expressing worries about credit conditions, which some investors interpreted as a sign that the Fed could begin tapering earlier than expected.
Before the Fed’s meeting, many market participants were anticipating that the stimulus plan would not change until at least early next year.
The Dow Jones industrial average fell 73.01 points, or 0.47 percent, to close at 15,545.75. The S&P 500 lost 6.77 points, or 0.38 percent, to finish at 1,756.54. The Nasdaq Composite dropped 10.91 points or 0.28 percent, to end at 3,919.71.
“This was more of an order flow thing,” said Dennis Dick, proprietary trader at Bright Trading LLC in Las Vegas. “Some participants, some institutions wanted out big time, and they got out.”
The S&P 500 is up 23.2 percent for the year so far.
“It’s already at nosebleed heights and it could go higher, but people are focusing on the rewards and not the risks,” including ongoing weakness in the economy,” said Uri Landesman, president of Platinum Partners in New York.
Facebook reported strong growth in its mobile advertising business late on Wednesday, though it said it didn’t plan to boost the frequency of ads shown to users. Facebook’s stock rose 2.4 percent to close at $50.21.
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