Stocks Opened Sharply Lower

U.S. stocks started sharply lower Wednesday as worries about the global economy weighed heavily after the prior day’s rally. The Dow Jones Industrial Average lately fell 291.12 points to 10,919.74. The Standard & Poor’s 500 Index declined 28.52 points to 1,144.01. The Nasdaq Composite Index lapsed 59.94 points to 2,422.58.

Goldman Sachs said on Wednesday a third round of quantitative easing from the Federal Reserve is likely after the U.S. Federal Reserve promised to keep rates at extraordinarily low levels for at least two more years.

U.S. crude futures advanced on  Wednesday. Crude oil for September delivery climbed 3.7%, or $2.90, to $82.23 a barrel.

HSBC is selling its U.S. credit card arm to Capital One Financial Corp in a $32.7 billion deal as Europe’s top bank streamlines its mammoth operations.

Cisco Systems Inc. will report quarterly results next week, with Wall Street expecting a slight sales gain as well as crucial clues on the state of the corporate tech market in the wake of dramatic slowdown.

Bank of New York Mellon Corp. says it will cut about 1,500 jobs, or 3 percent of its work force, in another sign of the banking industry’s struggles.


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