Major Averages Close Sharply Lower As Traders Digest Fed Decision

(RTTNews) - Stocks moved sharply lower over the course of the trading session on Friday, as traders continued to react to Thursday's Federal Reserve decision. The steep losses on the day came after the major averages ended the previous session mixed.

The sell-off on Wall Street came as the Fed's decision to leave interest rates unchanged pointed to continued uncertainty for the markets for at least the next month.

Most of the major sectors moved to the downside on the day, although energy stocks showed a particularly steep drop. The weakness in the energy sector came as the price of crude oil plummeted $2.22 to $44.68 a barrel.

Within the energy sector, oil service stocks turned in some of the worst performances, dragging the Philadelphia Oil Service Index down by 4.3 percent.

Steel stocks also saw substantial weakness, as the comments from the Fed stirred concerns about the outlook for global demand. The NYSE Arca Steel Index plunged by 3.3 percent, with Olympic Steel (ZEUS) helping to lead the way lower.

Considerable weakness was also visible among computer hardware stocks, as reflected by the 3 percent loss posted by the NYSE Arca Computer Hardware Index. Western Digital (WDC) and Seagate Technology (STX) posted steep losses.

Financial, transportation, housing and biotechnology stocks also moved notably lower, reflecting broad based selling pressure on Wall Street.

The major averages climbed off their worst levels going into the close but remained firmly in the red. The Dow plummeted 289.95 points or 1.7 percent to 16,384.79, the Nasdaq tumbled 66.72 points or 1.4 percent to 4,827.23 and the S&P 500 plunged 32.12 points or 1.6 percent to 1,958.08.

With the substantial pullback on the day, the major averages were roughly flat for the week. The Nasdaq inched up by 0.1 percent, while the Dow and the S&P 500 dipped by 0.3 percent and 0.2 percent, respectively.