Stocks Fall as Investors Fret Over Fed Stimulus Ending

The congressional budget deal fueled speculation the Federal Reserve will begin paring back its bond-buying program

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Stocks in the U.S. fell for the second straight day Wednesday, as investors reacted to a budget deal on Capitol Hill, fueling speculation that an end to the Fed’s bond-buying stimulus program may be near.

The S&P500 had its biggest back-to-back drop in two months, falling 1.1 percent to close at 1,782.05 after falling 0.3 percent Tuesday, Bloomberg reports. The Dow Jones average dropped 129.60 points, or 0.81 percent, to close at 15843.53.

The fall comes after lawmakers in Washington reached a compromise to pass a budget, reversing some spending comes and signaling a possible end to the recent brinksmanship on the Hill.

[Bloomberg]

1 comments
DeweySayenoff
DeweySayenoff

It used to be that having a budget deal and a better outlook for the economy was a good thing that made stocks go up.  But with the way government is run these days, apparently the wealthy have gotten all of the money they possibly can squeeze out of the system and are now going to leave the country with it.

Good riddance.  Now the rest of us can actually have a chance to make the country better than just standing here being urinated on from on high.