By Sinead Carew
The U.S. central bank said ongoing strong job gains and household spending were keeping the economy 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, deputy global head of fixed income at Columbia Threadneedle in Minneapolis. "That's why we see short-term yields ticked up and stocks down here. They are still on track."
At 3:17PM ET, the Dow Jones Industrial Average <.DJI> fell 33.22 points, or 0.13 percent, to 26,147.08, the S&P 500 <.SPX> lost 11.76 points, or 0.42 percent, to 2,802.13 and the Nasdaq Composite <.IXIC> dropped 55.15 points, or 0.73 percent, to 7,515.61.
The Wall Street Journal reported that Saudi Arabia's top government-funded think-tank is studying the possible effects on oil markets 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.
(Additional reporting by Richard Leong, April Joyner, Caroline Valetkevitch, Lewis Krauskopf and Jessica Resnick-Ault in New York and Sruthi Shankar in Bengaluru; Editing by Chizu Nomiyama and James Dalgleish)
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)