Fed Sparks Broad Losses on Wall Street
(NEW YORK) -- When the head of the Federal Reserve speaks, the markets listen. Stocks tanked on what they heard from the Central Bank this time. The Dow Jones Industrial Average closed down 190 points Monday, after trading down by more than 200 points. The blue chips index finished the session at 15,738.79. The Nasdaq Composite gave up 47 points to close at 4,051.43. The S&P 500 lost 18 points for the session, ending at 1,774.20.
The Central Bank has decided to continue to taper its economic stimulus programs by an additional $10 billion dollars as the economy continues to improve. The bond-buying had helped push stocks to record levels last year.
It was Ben Bernanke's last official act as Fed chairman. Janet Yellen will take over as chairwoman on Saturday.
Shares of Facebook are up close to 7 percent in after-hours trading after reporting better-than-expected earnings.
In 2013, the social network earned $7.87 billion, an increase of 55 percent year-over-year. Net income for the year was $1.50 billion. The company reported that for December 2013, an average of 757 million daily active users (DAUs) logged on to Facebook, an increase of 22 percent year-over-year. Mobile DAUs were 556 million on average for December 2013, an increase of 49 percent year-over-year. Mobile MAUs were 945 million as of December 31, 2013, an increase of 39 percent year-over-year.
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