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US Stocks fall on Fed language

FXStreet (Mumbai) - The equity markets in the US have weakened along with the rise in the US Treasury yields after the Federal Reserve ended the QE program, while sounding upbeat about the US economy.

The DJIA is trading 0.25% lower at 16,962.50, while the S&P 500 is trading lower by 0.34% at 1978.40. Meanwhile, the NASDAQ and the Midcap Russell 2000 index are trading lower by 0.66% each. The dip in the stock prices has pushed the S&P 500 VIX futures higher by 3.18%, to trade at 16.23 levels.

The Fed policy, acknowledged the improvement in the labor market conditions which made the policy tone sound a little hawkish. The central bank also stated that the inflation in the near-term is likely to remain low due to softness in the energy prices. However, the statement said, ” the likelihood of inflation running persistently below 2 percent has diminished somewhat.”

The hawkish tone has pushed up the treasury yields while pressurizing the stock prices. Meanwhile, the markets in the Eurozone continue to trade in the green. The Dax is trading 0.16% higher, while the Ftse is up 0.81%. Elsewhere, the Gold prices have dipped 1.33% to trade at USD 1213.20/Oz.

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