Investing.com - U.S. stocks slid on Wednesday after the Federal Reserve left policy unchanged but in a statement that markets viewed as slightly more hawkish than many were expecting.
At the close of U.S. trading, the Dow Jones Industrial Average finished down 0.39%, the S&P 500 index fell 0.46%, while the Nasdaq Composite index fell 0.55%.
The Federal Reserve on Wednesday 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.
The Fed said the economy was showing signs of improvement though it still faced enough headwinds to prompt monetary authorities to hold off on tapering its asset purchases, namely fiscal uncertainties that continue to drag on recovery.
Stimulus tools such as asset purchases aim to drive recovery by keeping long-term interest rates lower, boosting stock prices in the process.
"Economic activity has continued to expand at a moderate pace. Indicators of labor market conditions have shown some further improvement, but the unemployment rate remains elevated," the Fed said in its statement.
"Available data suggest that household spending and business fixed investment advanced, while the recovery in the housing sector slowed somewhat in recent months. Fiscal policy is restraining economic growth."
While Wednesday's policy statement came as little surprise to investors, many felt the statement wasn't as dovish as anticipated.
Past statements have shown the Fed was concerned that fiscal uncertainty was threatening to slow job creation, a point the U.S. central bank did not include this month, which gave rise to sentiments that bond purchases may begin to taper soon, which could send stocks falling amid the absence of monetary support.
Elsewhere, payroll processing firm ADP said U.S. non-farm private employment rose by a seasonally adjusted 130,000 in October, below expectations for an increase of 150,000.
The previous month’s figure was revised down to a gain of 145,000 from a previously reported increase of 166,000.
A separate report showed that U.S. consumer prices rose 0.2% in September, in line with forecasts, after rising by 0.1% in August.
Leading Dow Jones Industrial Average performers included General Electric, up 0.55%, Home Depot, up 0.46%, and Nike, up 0.34%.
The Dow Jones Industrial Average's worst performers included Procter & Gamble, down 1.13%, Verizon, down 1.09%, and IBM, down 1.05%.
European indices, meanwhile, finished largely lower.
After the close of European trade, the EURO STOXX 50 fell 0.29%, France's CAC 40 fell 0.09%, while Germany's DAX 30 fell 0.13%. Meanwhile, in the U.K. the FTSE 100 finished up 0.04%.
At the close of U.S. trading, the Dow Jones Industrial Average finished down 0.39%, the S&P 500 index fell 0.46%, while the Nasdaq Composite index fell 0.55%.
The Federal Reserve on Wednesday 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.
The Fed said the economy was showing signs of improvement though it still faced enough headwinds to prompt monetary authorities to hold off on tapering its asset purchases, namely fiscal uncertainties that continue to drag on recovery.
Stimulus tools such as asset purchases aim to drive recovery by keeping long-term interest rates lower, boosting stock prices in the process.
"Economic activity has continued to expand at a moderate pace. Indicators of labor market conditions have shown some further improvement, but the unemployment rate remains elevated," the Fed said in its statement.
"Available data suggest that household spending and business fixed investment advanced, while the recovery in the housing sector slowed somewhat in recent months. Fiscal policy is restraining economic growth."
While Wednesday's policy statement came as little surprise to investors, many felt the statement wasn't as dovish as anticipated.
Past statements have shown the Fed was concerned that fiscal uncertainty was threatening to slow job creation, a point the U.S. central bank did not include this month, which gave rise to sentiments that bond purchases may begin to taper soon, which could send stocks falling amid the absence of monetary support.
Elsewhere, payroll processing firm ADP said U.S. non-farm private employment rose by a seasonally adjusted 130,000 in October, below expectations for an increase of 150,000.
The previous month’s figure was revised down to a gain of 145,000 from a previously reported increase of 166,000.
A separate report showed that U.S. consumer prices rose 0.2% in September, in line with forecasts, after rising by 0.1% in August.
Leading Dow Jones Industrial Average performers included General Electric, up 0.55%, Home Depot, up 0.46%, and Nike, up 0.34%.
The Dow Jones Industrial Average's worst performers included Procter & Gamble, down 1.13%, Verizon, down 1.09%, and IBM, down 1.05%.
European indices, meanwhile, finished largely lower.
After the close of European trade, the EURO STOXX 50 fell 0.29%, France's CAC 40 fell 0.09%, while Germany's DAX 30 fell 0.13%. Meanwhile, in the U.K. the FTSE 100 finished up 0.04%.