Stocks Dropped Sharply after Fed Statement

U.S. stocks finished sharply lower on Wednesday after the U.S. Federal Reserve frustrated stock investors hoping for a strong sign it might scale back future interest rate hikes because of recent financial and economic turmoil. The Dow Jones Industrial Average dropped 222.77 points, or 1.38%, to 15,944.46. The S&P 500 declined 20.68 points, or 1.09%, to 1,882.95. The Nasdaq Composite was down 99.51 points, or 2.18%, to 4,468.17.

The Federal Reserve kept interest rates unchanged on Wednesday and said it was “closely monitoring” global economic and financial developments, but maintained an otherwise upbeat view of the U.S. economy.

Facebook Inc reported a better-than-expected 51.7 percent jump in revenue for the final quarter of 2015 as new advertising formats and an improved mobile app drove a sharp rise in ad sales. The company’s total revenue rose to $5.84 billion from $3.85 billion a year earlier.

EBay Inc reported no growth in revenue in the holiday quarter. The company’s revenue was $2.32 billion in the fourth quarter ended Dec. 31, flat with a year earlier. Net income fell to $477 million, or 39 cents per share, from $1.02 billion, or 82 cents per share.