Comments the Fed made ??Wall Street worsens
The stock market is the United States (U.S.) fell after the Federal Reserve cut its forecast for U.S. growth this year and next year, without a hint there are plans to continue the stimulus. Investors hope the positive comments from Fed Governor Ben Bernanke, but the truth is otherwise. And it gives them a reason to take action after a four-day rally that lifted the shares of the three-month low.
Some analysts see the trade will be depressed the next. Investment advisor and portfolio manager of Cozad Asset Management Bryant Evans said the market will probably be depressed for three months as the economy takes time to rebuild momentum.
Expectations about the second round of stimulus by the Fed helped trigger the strengthening stock index. There is some hope Fed will do another stimulus measures for the purchase of assets, but most economists see it is not possible at this time.
In late trading Wednesday (06/22/2011) local time, the Dow Jones industrial fell 80.34 points, or 0.66 percent, to 12109.67. Standard & Poor’s 500 index fell 8.38 points, or 0.65 percent, to 1287.14. And the Nasdaq Composite Index lost 18.07 points, or 0.67 percent, to 2669.19.
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