Wall Street falls after investor concerns that the Fed will pull the stimulus package or injected funds to help the economy.
Currently the Fed continued to hold interest rates scale as expected by the market, but the Fed also will reduce loans to buy housing sector until the end of March 2010.
This is seen as a step to withdraw its support to push the economy in the fall.
“They (the Fed) said it would change the policy used to do that is like buying debt instruments. Because the market is very worried about what would happen if the Fed had done that,” said Portfolio Manager of the Swarthmore Group Kurt Brunner was quoted as saying by Reuters on Thursday (24/9/2009).
These concerns led to the positive sentiment that Wall Street market decline. The Dow Jones fell 81.32 points (0.83%) to 9748.55. S & P index also fell 10.79 points (1.01%) to 1060.87. Then the Nasdaq index down 14.88 points (0.69%) to 2131.42.
Actually stocks Wall Street experienced a sharp rise after the Fed said that economic activity will increase, but at the last moments of trading, the market turned down because of fears the Fed will pull the stimulus package.
