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S&P widens loss after Fed statement, energy shares tumble

Reuters  |  NEW YORK 

By Sinead Carew

(Reuters) - The 500 extended its losses slightly on Thursday afternoon after a Federal Reserve statement, and led the declines as fell.

said ongoing strong job gains and household spending were keeping the on track but business investment "moderated from its rapid pace earlier in the year," creating a possible drag on future economic growth.

Aside from the Fed's comment about business investments, many investors said the statement was largely as expected and suggested that the Fed's next rate hike would be in December.

But some investors were hoping for a change in tone.

"There are those people who are unsatisfied by this statement because they were looking for a more dovish tone after last month's market volatility," said Gene Tannuzzo, of fixed income at in "That's why we see short-term yields ticked up and stocks down here. They are still on track."

At 3:17PM ET, the <.DJI> fell 33.22 points, or 0.13 percent, to 26,147.08, the 500 <.SPX> lost 11.76 points, or 0.42 percent, to 2,802.13 and the <.IXIC> dropped 55.15 points, or 0.73 percent, to 7,515.61.

The index <.SPXBK> erased its gains and turned negative after the as profits benefit from rising rates.

were the S&P's biggest drag with a 2.1 percent decline as U.S. entered a bear market, falling more than 20 percent from their Oct. 3 high. [O/R]

reported that Saudi Arabia's top government-funded think-tank is studying the possible effects on of a breakup of OPEC in a story citing unnamed people familiar with the matter.

Declining issues outnumbered advancing ones on the NYSE by a 1.39-to-1 ratio; on Nasdaq, a 1.24-to-1 ratio favoured decliners.

The posted 33 new 52-week highs and two new lows; the recorded 72 new highs and 71 new lows.

(Additional reporting by Richard Leong, April Joyner, Caroline Valetkevitch, and in and in Bengaluru; Editing by and James Dalgleish)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, November 09 2018. 02:29 IST