December 7, 2013
Wall Street ends session lower but posts gains for October
US stocks finished lower as the Federal Reserve's statement the day before added to investors' anxiety about the timing of a pullback in its stimulus programme.
While it was a second consecutive day of losses for the market, all three major indexes ended October with solid gains.
Dragging on the Dow and the S&P 500, Visa Inc (V.N) lost 3.5 percent to $196.67 after the world's largest credit and debit card company reported a 28 percent drop in quarterly profit.
The US central bank 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.
"That leaves tapering on the table for December," said Michael O'Rourke, chief market strategist at JonesTrading, in Greenwich, Connecticut.
Before the Fed's meeting, many market participants were anticipating that the stimulus plan would not change until at least early next year.
The Fed's accommodative monetary policy in recent years has contributed to the stock market's rally.
The Dow Jones industrial average .DJI fell 73.01 points, or 0.47 percent, to close at 15,545.75. The S&P 500 .SPX lost 6.77 points, or 0.38 percent, to finish at 1,756.54. The Nasdaq Composite .IXIC dropped 10.91 points or 0.28 percent, to end at 3,919.71.
The S&P 500 closed near its intraday low, with a wave of end-of-session selling marked by sell-order imbalances near the close.
European shares slipped further away from five-year highs today, with the Federal Reserve's less-dovish-than-expected statement raising concerns the US central bank could start trimming its stimulus sooner than foreseen.At 0843 GMT, the pan-European FTSEurofirst 300 index was down 0.2 percent at 1,285.53 points after climbing to a five-year high in the previous session. However, the index remained on track to record a second straight month of gains.