Stocks stabilize after two-day selloff
NEW YORK (AP) — Although stocks have been lower for much of the day, the declines are nothing like the ones that were seen yesterday and Wednesday.
The market has been relatively stable today, as investors recover from the jolt caused by Fed chairman Ben Bernanke’s announcement Wednesday that the stimulus effort’s days are numbered.
Stocks opened higher before turning lower at mid-morning. The major indexes have since been moving between small gains and losses.
Analyst Kim Forrest with Fort Pitt Capital Group, a portfolio management firm in Pittsburgh, says the market had the “right reaction” to the news that the Fed would wind down its stimulus effort if the economy continues to improve, though she says the move may have been overblown. She says, “The reaction is right, the magnitude is probably a little off.”
Over the past two days, the Dow plunged 560 points after the Federal Reserve said it could wind down its bond-buying program by the middle of next year.