Bernanke Hints at Scaling Back Stimulus; Dow Tumbles Over 200 Points
The Federal Reserve announced on Wednesday that there will be no change in its bond purchases at the moment, but by the end of the year it may begin to scale back the economic stimulus. Chairman Ben Bernanke said that if recovery continues at its current pace the program should end around mid-2014. US stocks tumbled after this news and the Dow saw another trip-digit move but in the negative direction. Although Adobe (ADBE) continued to rise on Wednesday other tech stocks such as Apple (AAPL) and Microsoft (MSFT) dragged down the sector.FedEx (FDX) reported quarterly profit that was higher than expected and saw shares rise. The US dollar gained against the major currencies and gold dropped after Bernanke's remarks.
Word on the Street
- Fed to continue with bond-buying program, raises economic outlook.
- Nvidia Corp. (NVDA) rises after announcing expansion plans.
- Blackberry (BBRY) falls almost 4% after its rating was cut to ahead of earnings.
- New orders worth approximately $30 billion push shares of Boeing (BA) higher.
- Oil falls on signaled easing of economic stimulus.
Published on Jun 19, 2013By InvestorGuide Staff