Investing.com - U.S. stocks dipped on Thursday as investors jumped to the sidelines to ponder when the Federal Reserve will begin unwinding its USD85 billion monthly bond-buying program, which boosts equity prices by driving down borrowing costs.
At the close of U.S. trading, the Dow Jones Industrial Average finished down 0.47%, the S&P 500 index fell 0.38%, while the Nasdaq Composite index fell 0.28%.
On Wednesday, the Federal left its key benchmark lending target, the fed funds rate, unchanged at 0.25% and kept its USD85 billion monthly asset-purchasing program in place, which came as little surprise on Wall Street.
Still, the Fed's language came across as less dovish than markets were anticipating by omitting threats to the labor market mentioned in previous statements, which pressured stocks lower.
Solid data hitting the wire on Thursday solidified expectations that the Fed will begin tapering its stimulus programs in early 2014 as opposed to after March as once thought, and thus take away the monetary crutch that has pushed up stock prices for over a year.
Data released earlier revealed that the Chicago manufacturing purchasing managers’ index jumped to 65.9 in October from 55.7 in September.
Analysts had expected the index to decline to 55.0.
The new orders component of the index jumped to a nine-year high of 74.3 from 58.9 in September.
Elsewhere, the Department of Labor said the number of individuals filing for initial jobless benefits in the week ending October 25 declined by 10,000 to a seasonally adjusted 340,000, in line with market expectations.
Leading Dow Jones Industrial Average performers included Exxon Mobil, up 0.91%, 3M, up 0.90%, and Boeing, up 0.71%.
The Dow Jones Industrial Average's worst performers included Visa, down 2.92%, JPMorgan Chase, down 1.99%, and American Express, down 1.52%.
European indices, meanwhile, finished largely higher
After the close of European trade, the EURO STOXX 50 rose 0.80%, France's CAC 40 rose 0.60%, while Germany's DAX 30 rose 0.26%. Meanwhile, in the U.K. the FTSE 100 finished down 0.68%.
At the close of U.S. trading, the Dow Jones Industrial Average finished down 0.47%, the S&P 500 index fell 0.38%, while the Nasdaq Composite index fell 0.28%.
On Wednesday, the Federal left its key benchmark lending target, the fed funds rate, unchanged at 0.25% and kept its USD85 billion monthly asset-purchasing program in place, which came as little surprise on Wall Street.
Still, the Fed's language came across as less dovish than markets were anticipating by omitting threats to the labor market mentioned in previous statements, which pressured stocks lower.
Solid data hitting the wire on Thursday solidified expectations that the Fed will begin tapering its stimulus programs in early 2014 as opposed to after March as once thought, and thus take away the monetary crutch that has pushed up stock prices for over a year.
Data released earlier revealed that the Chicago manufacturing purchasing managers’ index jumped to 65.9 in October from 55.7 in September.
Analysts had expected the index to decline to 55.0.
The new orders component of the index jumped to a nine-year high of 74.3 from 58.9 in September.
Elsewhere, the Department of Labor said the number of individuals filing for initial jobless benefits in the week ending October 25 declined by 10,000 to a seasonally adjusted 340,000, in line with market expectations.
Leading Dow Jones Industrial Average performers included Exxon Mobil, up 0.91%, 3M, up 0.90%, and Boeing, up 0.71%.
The Dow Jones Industrial Average's worst performers included Visa, down 2.92%, JPMorgan Chase, down 1.99%, and American Express, down 1.52%.
European indices, meanwhile, finished largely higher
After the close of European trade, the EURO STOXX 50 rose 0.80%, France's CAC 40 rose 0.60%, while Germany's DAX 30 rose 0.26%. Meanwhile, in the U.K. the FTSE 100 finished down 0.68%.