US STOCKS-Wall St ends with modest decline after Fed

miércoles 29 de octubre de 2014 16:27 GYT
 

* Fed ends QE, says U.S. recovery to remain on track

* Facebook shares down as expenses seen rising

* Visa up late following after-hours results

* Indexes down: Dow 0.2 pct, S&P 0.1 pct, Nasdaq 0.3 pct (Updates to market close, adds Visa results)

By Ryan Vlastelica

NEW YORK, Oct 29 (Reuters) - U.S. stocks closed with slight losses on Wednesday, finishing off their lows of the session, after the Federal Reserve ended its stimulative monthly bond-buying program and expressed confidence in U.S. economic prospects.

Major indexes were volatile following the central bank's statement, with the S&P 500 down as much as 0.8 percent before pulling back. Material shares were lower throughout the session, a decline in Facebook pressured the Nasdaq, but strength in energy and financial shares helped the market recover.

In a statement after a two-day meeting, the Fed ended its quantitative easing program of bond purchases, as had been expected. At its peak, the program pumped $85 billion a month into the financial system. The Fed also dropped a characterization of U.S. labor market slack as "significant" in a show of confidence in the economy's prospects.

"The Fed had a little more of a hawkish bent than the market expected, but any weakness that came from the statement was obviously viewed as a buying opportunity," said Alan Gayle, director of asset allocation at RidgeWorth Investments in Atlanta, Georgia.   Continuación...