Summary Box: Stocks plunge after Fed statement

AP News
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Posted: Sep 21, 2011 5:14 PM
Summary Box: Stocks plunge after Fed statement

FED DECISION SINKS MARKETS: The Fed's decision to buy long-term Treasurys and sell short-term ones to help get the economy back on its feet was expected. Stocks sank anyway on fears the Fed's statement showed economy was in dire shape.

LAST-MINUTE SELLING: Stocks plunged with 45 minutes left in the trading day. The Dow Jones industrial average lost more than 200 points between 3:15 p.m. and 4:00 p.m.

THE INDEXES: The Dow Jones industrial average lost 283.82 points, or 2.5 percent, and closed at 11,124.84. The Standard & Poor's 500 index fell 35.33, or 2.9 percent, to 1,166.76. The Nasdaq composite fell 52.05, or 2 percent, to 2,538.19.