NEW YORK (AP) — Stocks are closing lower after the Federal Reserve brought down its estimates for U.S. economic growth.
The Dow Jones industrial average dropped 80 points, or 0.7 percent, to close at 12,110. The S&P 500 index fell 8 points, or 0.7 percent, to close at 1,287. The Nasdaq fell 18 points, or 0.7 percent, to 2,669.
The Fed now expects the economy to grow between 2.7 percent and 2.9 percent this year. That’s down from its previous estimate of 3.1 percent to 3.3 percent.
Fed Chairman Bernanke said at a press conference that some of the problems plaguing the economy “may be stronger and more persistent than we thought.”
Three stocks fell for every two that rose on the New York Stock Exchange. Volume was light at 3.3 billion shares.