New York equities end: indices collapse – Fed disappointed ‘Keep it up’

NEW YORK (dpa-AFX) – Out of disappointment over a lack of stimulus from the US Federal Reserve (Fed), Wall Street went downhill on Wednesday. Stock marketers also pointed to concerns that have recently risen that stocks are now generally overvalued after the latest record rally. The most important US stock market indices fell between 2.1 and 2.8 percent.

The leading index Dow Jones Industrial lost 2.05 percent to 30,303.17 points. The market-wide S&P 500 slumped 2.57 percent to 3750.77 points. Both standard value indices have thus been in the red again since the beginning of the year. For the technology-heavy Nasdaq 100 it went down 2.80 percent to 13 112.65 points. Its annual balance sheet so far shows an increase of almost 2 percent.

After its first meeting of the current year, the Fed announced that it would keep the key rate between 0 and 0.25 percent. Stockbrokers were disappointed that Federal Reserve Chairman Jerome Powell had not promised any new aid for the economy.

Portfolio manager Thomas Altmann from QC Partners also wrote that the Fed sees a slowdown in the economic recovery. While this is bad for the stock market per se, it shouldn’t really come as a surprise. After all, the economic indicators have recently pointed more down again./la/he

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