NEW YORK: US stocks Wednesday fell sharply after Federal Reserve Chairman Ben Bernanke said the Fed expects to taper bond-buying purchases later this year.
At the closing bell, the Dow Jones Industrial Average sank 205.50 (1.34 percent) to 15,112.73.
The broad-based S&P 500 fell 22.85 (1.38 percent) to 1,628.85, while the tech-rich Nasdaq Composite Index tumbled 38.98 (1.12 percent) to 3,443.20.
The Federal Open Market Committee announced that it was keeping its $85 billion-a-month bond-buying program in place.
But during a news conference Bernanke said that "the Committee currently anticipates that it would be appropriate to moderate the monthly pace of purchases later this year" if the economic outlook continues to improve.
"Reality is setting in that the tapering is just around the corner," said Alan Skrainka, chief investment officer for Cornerstone Wealth Management.
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