Stocks Plunged on Fed’s Stimulus Plan

U.S. stocks Plunged on Thursday, hit by fear that the U.S. Federal Reserve will start scaling back its bond- buying program later this year. The Dow Jones industrial average fell 353.87 points or 2.34 percent, to 14,758.32, the S&P 500 lost 40.74 points or 2.50 percent, to 1,588.19 and the Nasdaq Composite dropped 78.57
points or 2.28 percent, to 3,364.63.

House Speaker John Boehner has some harsh words for the Federal Reserve’s bond-buying program in an interview set to air Thursday afternoon on CNBC, telling the network’s Maria Bartiromo that the market’s selloff is a result of the central bank’s policies.

Home resales rose in May to the highest level in 3-1/2 years and prices jumped, a sign the housing sector recovery is gathering steam and could give the economy a significant boost this year. The National Association of Realtors said on Thursday that existing home sales advanced 4.2 percent to an annual rate of 5.18 million units,  the highest level since November 2009 when a home-buyer tax credit was expiring.

Gold and silver futures closed at their lowest levels in more than 2 ½ years Thursday, a day after Federal Reserve Chairman Ben Bernanke said the central bank could move as early as this year to slow the flow of monetary stimulus to the economy. Gold for August delivery GCQ3 -6.83% dropped $87.80, or more than 6%, to end Nymex floor trade at $1,286.20 an ounce.

Crude-oil futures dropped sharply on Thursday as the market grappled with a continued Chinese manufacturing slowdown and signals from the Federal Reserve that a reduction in monetary stimulus is in sight. Crude for July delivery  lost $2.84, or 2.9%, to settle at $95.40 a barrel on the New York Mercantile Exchange.

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