US STOCKS-Wall Street sinks after Fed fails to impress
* Fed keeps rates steady, closely watching global markets
* Apple, Boeing drop after forecasts miss estimates
* Dow down 1.38 pct, S&P down 1.09 pct, Nasdaq down 2.18 pct (Updates to close)
By Noel Randewich
Jan 27 (Reuters) - Wall Street dropped sharply on Wednesday after the U.S. Federal Reserve frustrated stock investors hoping for a strong sign it might scale back future interest rate hikes because of recent financial and economic turmoil.
In a widely expected decision, the Fed kept interest rates unchanged and it said it was "closely monitoring" global economic and financial developments, but it maintained an otherwise upbeat view of the U.S. economy.
With plummeting oil prices and fears of slower economic growth in China sending the S&P 500 down 8 percent in 2016, investors saw the Fed's conciliatory comments as a step in the right direction.
But some on Wall Street had hoped an even stronger indication that policymakers might scale back the pace of future interest rate hikes.
"It sounds like they are unimpressed with what has happened in the markets, that it has been insufficient to change their plans. That's the takeaway and it's why the market is going down," said Stephen Massocca, Chief Investment Officer of Wedbush Equity Management LLC in San Francisco. Continuación...