Stocks cut losses on Fed's economic stimulus plans
The stock market had a halfhearted comeback yesterday after the Federal Reserve announced it would take small steps to stimulate the economy.
The Dow Jones industrial average, down about 100 points before the Fed announced its plans, recovered to a loss of 54. The other major market indexes also bounced back from their lows. But investors were still cautious: The Dow was able to briefly show a gain, but fell back again as traders recognized that the Fed's moves, while welcome, would be small and won't cure the economy's problems.
News that the Fed would be buying government debt, and in the process reduce the supply of Treasury issues on the market, sent Treasurys higher. The yield on the government's 10-year note, which moves in the opposite direction from its price, fell to 2.77 percent from 2.83 percent before the announcement. The yield is used to help set rates on mortgages and other consumer loans.
The Dow closed down 54.50, or 0.5 percent, at 10,644.25. The Standard & Poor's 500 index fell 6.73, or 0.6 percent, to 1,121.06. The Nasdaq composite index closed down 28.52, or 1.2 percent, at 2,277.17.
- AP
'I'm going to try to avoid it' A trip to the emergency room in a Long Island hospital now averages nearly 4 hours, data shows. NewsdayTV's Virginia Huie reports.
'I'm going to try to avoid it' A trip to the emergency room in a Long Island hospital now averages nearly 4 hours, data shows. NewsdayTV's Virginia Huie reports.
