Stocks fall after Fed decision to buy bonds

Published September 21, 2011 by
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NEW YORK (AP) ? The stock market is down moments after the Federal Reserve announced it will buy long-term Treasurys and sell short-term securities to help the economy regain momentum.

The major stock indexes fluctuated in the first 20 minutes after the Fed’s announcement. The central bank met for two days to discuss the weakening economy and what to do about it. In a statement accompanying its decision to buy long-term bonds, the Fed said the economy has “significant downside risks.” One of those risks is the volatility in financial markets around the world.

At 2:35, the Dow Jones industrial average is down 56, or 0,5 percent, at 11,352. The Standard & Poor’s 500 is down 8, or 0.7 percent, at 1,194, The Nasdaq composite is up 6, or 0.2 percent, at 2,596.

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