Forexpros – U.S. stocks closed lower Wednesday, as Fed Chief Ben Bernanke gave no signal for additional measures to spur the economy
After the close, the Dow gave back 0.41%, the S&P 500 index dropped 0.47%, while the Nasdaq plunged 0.67%.
U.S. stocks sold off, from earlier gains, as Federal Reserve Chairman Ben Bernanke failed to signal further monetary easing in the world’s largest economy.
Bernanke stated that keeping monetary stimulus steady was warranted despite falling jobless claims and rising oil prices potentially increasing inflation.
The Fed Chief added, policy makers believe that “sustaining a highly accommodative stance for monetary policy is consistent with promoting both objectives” of the Fed for stable prices and maximum employment.
Sparking the early session rally, the European Central Bank said it will lend 800 financial institutions EUR529.5 billion for 1092 days. This is higher than the estimated loan level of EUR470 billion easing systematic risk fears.
In additional bullish news, European Union Competition Commissioner, Joaquin Almunia stated that EU leaders may consider relaxing budget deficit targets to take into consideration economic growth.
Meanwhile, in the U.S., the economy expanded 3% beating forecasts.
Commodity stocks got hammered as gold plunged the most in 8 weeks with Newmont Mining giving back 4.5% and Alcoa slipping 1.9%.
First Solar plummeted 12% after reporting a surprising loss.
Apple broke the USD500 billion market cap barrier with shares climbing 0.7%.
In bullish news, builder Toll Brothers added 4.7% on an impressive 45% spring home order increase.
At the close of European trade, the EURO STOXX 50 gave back 0.30%, France’s CAC 40 slipped 0.04%, while Germany’s DAX dropped 0.46%. Meanwhile, in the U.K. the FTSE 100 plunged 0.96%.
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