Mid-Day Update: US Stocks Extend Slump on Fed Disappointment
US stocks swung back to negative territory before midday, after initially posting moderate gains, on Thursday extending losses from the previous session brought by the Federal Reserve's decision to raise benchmark interest rates and signals that it would continue to let its massive balance sheet shrink at its current pace.
In economic news, the Bureau of Labor Statistics survey showed new unemployment claims bounced 8,000 to 214,000 in the Dec. 15 week as compared with the 220,000 level seen by forecasters.
The Philadelphia Fed Manufacturing Index slid 3.5 points to 9.4 in December, weaker than the 16.5 forecast, after dropping 9.3 points to 12.9 in November.
The index of leading economic indicators rose 0.2% to 111.8 in November, above consensus for no change, after falling 0.3% in October to 111.6 (revised down from 112.1).
In Europe, equities also took a hard hit from the disappointing policy decision of the Federal Reserve.
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