Stocks Ended Sharply Lower on Fed Talk

U.S. stocks tumbled on Tuesday as investors fretted the limits of the Federal Reserve’s monetary policy. The Dow Jones Industrial Average fell 101.37 points, or 0.75%, to 13,457.55. The S&P 500 index declined 15.30 points, or 1.05%, to 1,441.59. The Nasdaq Composite lost 43.05 points, or 1.36%, to 3,117.73.

One of the leading hawks on the Federal Reserve slammed the central bank’s new asset purchase program on Tuesday, saying that it wasn’t necessary, wouldn’t work and is risky. “We are unlikely to see much benefit to growth or employment from further asset purchases,” said Charles Plosser, the president of the Philadelphia Fed Bank, in a speech to financial market trade groups in Philadelphia.

Millions of seniors enrolled in some of the most popular Medicare prescription drug plans face double-digit premium hikes next year if they don’t shop for a better deal, says a private firm that analyzes the highly competitive market. Seven of the top 10 prescription plans are raising their premiums by 11 percent to 23 percent, according to a report this week by Avalere Health.

The IBM (IBM) board of directors on Tuesday elected Virginia Rometty as chairman, effective Oct. 1, the company said. Rometty, 55, is currently IBM’s president and chief executive officer. She is succeeding Samuel Palmisano who is stepping down from the board.