US STOCKS TUMBLE AFTER COMMENTS BY FED

AAP September 26, 2012

A FEDERAL Reserve official's doubts about the impact of the QE3 stimulus have pulled the rug from under US stock markets, sending them lower after strong early gains.

The Nasdaq tumbled as major tech stocks sank, with Apple falling 2.5 per cent, Oracle 2.8 per cent, Facebook 2.4 per cent and eBay 2.6 per cent.
At the closing bell the Dow Jones Industrial Average was down 64.87 points (0.48 per cent) at 13,494.05.
The S&P 500 lost 15.12 (1.04 per cent) at 1441.77.
The Nasdaq Composite shed 43.05 points (1.36 per cent) at 3117.73.
Markets opened higher on encouraging data on housing prices and consumer confidence.
But in afternoon trade, comments by Charles Plosser, head of the Fed's Philadelphia branch, appeared to spark a selloff.
Plosser said he was doubtful the QE3 bond-buying program announced earlier this month would have great impact on charging up the US economy, and warned that the Fed could lose credibility.