US markets sold off heavily after Fed announcement $SPY

  • US markets sold off after the Federal Reserve announced plans to buy USD400 Billion in longer dated Treasuries. Although this was inline with expectations, the markets confidence was sapped after hope of a potential QE3 was dashed. The Fed’s moved pushed the yield on 30 Year bonds to below 3% for the first time since 2008 
  • Adding to the gloom, Moody’s downgraded the credit rating of BoA and Wells Fargo due to the decreased probability of government support if a banking crisis was to eventuate. As a result of the downgrade BAC fell 7.54% to $6.38 per share and WFC fell 3.89% to $23.71 per share 
  • Leading the losses on the Dow was BAC, JPM and CAT and TRV each down 7.54%, 5.92%, 5.14% and 4.42% respectively 
  • Bucking the trend was HPQ which rallied 6.7% on rumours the board will met to decide on the future of current CEO Leo Apotheker 
  • Dow Jones -2.49% S&P500 -2.94% NASDAQ -2.01% 
  • US Dollar Index rallied to 78.46, a 6 month high. AUD fell a 1.0027 low 
  • Gold eased after the Fed announcement and spot Crude was weaker
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