U.S. Stocks End Lower After Fed Ends QE

MarketWatch Pulse

The U.S. stock market finished off session lows on Wednesday. But stocks still ended lower after the Federal Reserve made official its plans to end the last round of its bond-buying program. Although the Fed said it would keep fed funds rate at zero, investors were surprised by the Fed's upbeat view on the labor market and inflation. In the accompanying statement, for the first time, the Fed explicitly said it could raise interest rates sooner than markets anticipate if the economy grows faster than the bank projects. The S&P 500 closed 2.75 points, or 0.1%, to 1,982.30. The Dow Jones Industrial Average closed 31.44 points, or 0.2% to 16,974.31. The Nasdaq Composite fell 15.07 points, or 0.3%, at 4,549.23.

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