Stocks Fall 1%, Dow Slumps 150 After Bernanke

[WestVirginiaRebel]

CNBC :

Stocks extended their losses in the final minutes of trading Wednesday, with the Dow dropping more than 150 points, after the Federal Reserve said it will maintain its bond-buying program, though Chairman Ben Bernanke hinted that the FOMC plans to moderate purchases later this year.

"They don't tie themselves officially into anything but it's clearly what they're going to do," said Jim Paulsen, chief investment strategist at Wells Capital Management. "I think he's more clearly said today than at any other time that he's going to taper before the end of the year, and there's a possibility he could be done by the middle of next year."

The Dow Jones Industrial Average was down triple digits, after rallying more than 200 points over the last two sessions.

The S&P 500 and the Nasdaq also dropped. The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, dipped below 16.

All key S&P sectors turned lower, dragged by telecoms and utilities.

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The Bernanke effect.