Fed outlook sends Wall Street lower
- 27 January 2016
- From the section Business
(Close): Wall Street sank on Wednesday after the Federal Reserve said US growth had slowed down.
Investors offloaded technology companies, already under pressure following a shaky outlook from Apple, as well as consumer stocks such as cruise lines.
There were also disappointing results from Boeing, whose shares fell almost 9%.
The Dow Jones Industrial Average ended 1.4% lower at 15,944 points.
Shares in Apple fell 6.5% after the technology giant reported only marginal growth for iPhone sales.
Shares in aircraft maker Boeing suffered their biggest one-day loss in 14 years after saying that revenue and deliveries could fall in 2016. Boeing shares ended $11.40 lower at $116.61.
Facebook shares closed down almost 3%, but soared more than 12% in after-hours trading after more than doubling profits for the last three months of 2015.
US crude rose 2.7% to close at $32.30 a barrel in New York, while Brent crude jumped 4.1% to $31.10 a barrel in London. Oil prices also increased about 4% on Tuesday.
The US central bank said it was "closely monitoring" global economic conditions, but would not raise interest rates. It did so for the first time in almost a decade last month.
Since the Fed took action in December, oil has plunged, stock markets have swung wildly and investors have become more concerned that China's huge economy - a major driver of global growth - is losing momentum.
The Fed said US growth had slowed as exports fell because of the strong dollar.