Stock prices dropped sharply Wednesday as investors reacted to the Federal Reserve’s decision to continue scaling back its stimulus program.
The Dow Jones Industrial Average closed at 15,739.88, down 1.2 percent, after losing 188.68 points for the day. The S&P 500 lost one percent, closing at its lowest level since November, Bloomberg reports. A disappointing sales forecast led Yahoo! Inc’s stock price to drop 8.7 percent.
Analysts point to the Federal Reserve’s decision to reduce its bond-buying program by $10 billion expected, even as emerging markets have experienced economic upheaval in recent weeks. The bond buying program is designed to keep interest rates low in an attempt to pump life into the economy.