Wall St falls after Fed sticks with taper plan
NEW YORK (REUTERS) - United States (US) stocks dropped more than 1 per cent on Wednesday, hitting session lows after the Federal Reserve stuck with its plan to scale back stimulus even in the midst of emerging market turmoil.
Trading was volatile after the Fed's move, which further reduces its monthly bond purchases by US$10 billion (S$12.7 billion) a month.
Declines were fairly broad-based, with nine of the 10 S&P 500 sector indexes ending lower. Shares of Boeing Co ranked among the biggest drags on both the Dow and the S&P 500.
Overall improvement in the US economy suggested the central bank would continue to cut the purchases, but some investors had speculated in recent days that the Fed might rethink its plan because of the emerging market problems.