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Stocks Log 2nd Straight Down Week
1The Nasdaq lost 2.6% and the Dow Jones industrial average 0.8%. The week started out strong, with major indexes hitting multiyear highs. But volume lagged. Sellers took control on Tuesday and Wednesday, slapping the market with two distribution days. Stocks showed resilience Thursday. They traded quietly Friday.
Fed Alters Policy Wording
2Policy-makers left the fed funds target at a 45-year low of 1%. They dropped their vow to keep rates low for a "considerable period," though they said they could be "patient." The economy is "expanding briskly." Hiring has been "subdued," but the Fed noted positive signs, making Friday's January jobs report even more important.
Yields Climb On Rate Fears
3The yield on the benchmark 10-year Treasury note climbed to 4.14% from 4.06 a week ago. The Fed's subtle shift, which came as a surprise, given the gains in rate-sensitive securities in recent weeks, sparked the sell-off in the Treasury pits. Gold also tumbled. Nymex gold slumped below $400 an ounce Wednesday and Thursday, but finished the week at $402.90.
4% GDP Misses Estimates