US stocks fell further Tuesday after commentary from the Federal Reserve failed to confirm thoughts of a rate cut ahead, adding to bearish sentiment that came along with a drop in home prices and consumer confidence. Market participants were disappointed about the fact that there wasn't even a small minority seeking a shift to a neutral policy stance, let alone an aggressive approach to dealing with the brewing credit crisis, analysts said.
There had been some hope on the Street that Fed policy makers might have sent a stronger signal they were more willing to cut interest rates to help calm turbulent market conditions. But in the minutes from the Federal Open Market Committee's Aug. 7 meeting, while the central bank noted the turmoil in the markets and said, "to the extent such a development could have an adverse effect on growth prospects, might require a policy response," it didn't discuss a cut in the benchmark federal funds rate that Wall Street has wanted.
The meeting predated a number of actions taken by the central bank to try to alleviate market volatility, including the Aug. 17 lowering of the discount rate, the interest the Fed charges banks to borrow money. Wall Street, despite a calmer week after that step, seems to be growing more dissatisfied because the Fed has not yet lowered the funds rate -- and with a return to the intense volatility seen earlier this month may be trying to force the Fed to act.
The Dow fell 280.28, or 2.10%, to 13,041.85, its biggest drop since Aug. 9. Stocks rose in fairly subdued trading last week, but began to pullback on Monday on sluggish economic data. Broader stock indicators were also lower. The Standard & Poor's 500 index was down 34.43, or 2.35%, at 1,432.36, and the Nasdaq composite index shed 60.61, or 2.37%, to 2,500.64.
Indian ADRs crash; ICICI Bank, VSNL down more than 4%
Indian ADRs had a very bad day yesterday and all of them ended in the red. In the technology pack, Infosys Technolgoies was down 3.24% at 45.16, Patni Computers was down 0.75% at 22.44, Satyam Computers was down 3.3% at 23.75, while Wipro ended the day 3.57% lower at 13.51.
In the non-technology pack, HDFC Bank was down 3.15% at 81.40, VSNL was down 4.45% at 17.82, ICICI Bank was down 4.73% at 41.90, MTNL was down 3.75% at 6.42, Tata Motors was down 2.51% at 15.90, Dr Reddy's Lab was down 1.73% at 15.36 and Sterlite was down 2.78% at 14.70.
There had been some hope on the Street that Fed policy makers might have sent a stronger signal they were more willing to cut interest rates to help calm turbulent market conditions. But in the minutes from the Federal Open Market Committee's Aug. 7 meeting, while the central bank noted the turmoil in the markets and said, "to the extent such a development could have an adverse effect on growth prospects, might require a policy response," it didn't discuss a cut in the benchmark federal funds rate that Wall Street has wanted.
The meeting predated a number of actions taken by the central bank to try to alleviate market volatility, including the Aug. 17 lowering of the discount rate, the interest the Fed charges banks to borrow money. Wall Street, despite a calmer week after that step, seems to be growing more dissatisfied because the Fed has not yet lowered the funds rate -- and with a return to the intense volatility seen earlier this month may be trying to force the Fed to act.
The Dow fell 280.28, or 2.10%, to 13,041.85, its biggest drop since Aug. 9. Stocks rose in fairly subdued trading last week, but began to pullback on Monday on sluggish economic data. Broader stock indicators were also lower. The Standard & Poor's 500 index was down 34.43, or 2.35%, at 1,432.36, and the Nasdaq composite index shed 60.61, or 2.37%, to 2,500.64.
Indian ADRs crash; ICICI Bank, VSNL down more than 4%
Indian ADRs had a very bad day yesterday and all of them ended in the red. In the technology pack, Infosys Technolgoies was down 3.24% at 45.16, Patni Computers was down 0.75% at 22.44, Satyam Computers was down 3.3% at 23.75, while Wipro ended the day 3.57% lower at 13.51.
In the non-technology pack, HDFC Bank was down 3.15% at 81.40, VSNL was down 4.45% at 17.82, ICICI Bank was down 4.73% at 41.90, MTNL was down 3.75% at 6.42, Tata Motors was down 2.51% at 15.90, Dr Reddy's Lab was down 1.73% at 15.36 and Sterlite was down 2.78% at 14.70.
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