Split over economy ends stock market rally
A trader works on the floor at the New York Stock Exchange in Manhattan on Monday. A last-minute deal agreed to by U.S. lawmakers late Tuesday triggered a global market rally on Wednesday. (Dec. 31, 2012) Credit: AP
A two-day rally in the stock market came to an end Thursday afternoon when an account of the Federal Reserve's last meeting revealed a split between bank officials over how long the Fed should keep buying bonds to support the economy.
The Dow Jones industrial average and the Standard & Poor's 500 index treaded water for much of the day, then slid into the red around 2 p.m., after the Fed released the minutes from its December meeting.
The Dow ended with a loss of 21.19 points at 13,391.36.
The S&P 500 lost 0.21 percent to 1,459.37 and the Nasdaq composite fell 0.38 percent to 3,100.57.
The stock market opened on a weak note after retailers reported mixed holiday sales and as the prospect of a new budget battle in Congress loomed.
"It's natural to relax a bit after such a huge day as yesterday," said Lawrence Creatura, who manages a small-company fund at Federated Investors.
The Dow soared 308 points Wednesday, its largest point gain since December 2011. The rally was ignited after lawmakers passed a bill to avoid a combination of government spending cuts and tax increases called the "fiscal cliff." That deal gave the market a jump start into the new year. The Dow and the S&P 500 are already up more than 2 percent. -- AP
Cybersecurity attacks rise in schools ... Town bans decorations at parks, cemeteries ... LI graduate schools among nation's best ,,, Delivering baby essentials
Cybersecurity attacks rise in schools ... Town bans decorations at parks, cemeteries ... LI graduate schools among nation's best ,,, Delivering baby essentials
