Alan Valdes, vice president of trading at DME Securities, weighs in on the stock market's reaction to the FOMC's announcement that the Federal Reserve will keep interest rates unchanged, but suggested the possibility of tapering its quantitative easing program in the near future.
At a news conference, Federal Reserve Chairman Ben Bernanke said if the economy continues to improve the bond-buying program could start winding down towards the end of 2013 and wrap up in 2014.
The Dow Jones Industrial Average .DJI plunged 206.04 points, or 1.35 percent, to close at 15,122.19. The S&P 500 and Nasdaq fell over 1 percent. The Standard & Poor's 500 .SPX fell 22.88 points, or 1.39 percent, to end at 1,628.93. The Nasdaq Composit Index .IXIC dropped 38.98 points, or 1.12 percent to close at 3,443.20.