Economics
U.S. Stocks Drop as Fed Cuts Growth Forecast, Plans for QE2 End
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U.S. stocks declined, halting a four-day rally, after the Federal Reserve lowered its forecast for economic growth and said it plans to finish its $600 billion bond-purchase program this month as scheduled.
Adobe Systems Inc., the world’s largest maker of graphic-design software, retreated 6.3 percent after reporting lower-than-expected Europe sales. Sprint Nextel Corp. decreased 2.3 percent as Sanford C. Bernstein & Co. said the company faces risks from its strategy for fourth-generation phones. FedEx Corp., operator of the world’s biggest cargo airline and considered a proxy for the economy, advanced 2.6 percent after forecasting earnings that may top analysts’ projections.