24 Sep 2009

US sharemarket falls

2:03 pm on 24 September 2009

Wall Street stocks fell in late trading after the market reacted to statements by the Federal Reserve indicating a step towards withdrawal of stimulus measures.

The Dow Jones Index closed down 81 points, or 0.8%, to 9748.

The Nasdaq Composite fell 14 points, or 0.7%, to close at 2131.

The Standard & Poor's 500 Index closed down 10.79 points, or 1.01%, at 1,060.87.

The Federal Reserve's decision to keep interest rates at 0.25% was expected.

However the central bank's announcement that it would slow purchases of mortgage debt, in order to extend the programme of stimulus measures until the end of March, was seen as a step towards withdrawal of the support for the economy.

Stocks of banks, housing companies and energy businesses fell on the news.