Wall Street fell for a fifth straight session on Wednesday after the Federal Reserve left U.S. interest rates unchanged and investors remained nervous about the upcoming vote on whether Britain should leave the EU. Bobbi Rebell reports.
Stocks fell yet again on Wednesday, making it five sessions in a row. The Fed held steady on interest rates as expected, but lowered its economic growth forecast and signaled two rate increases this year. There were continued jitters about the upcoming vote on whether Britain should leave the European Union, that weighed on the market. Steven Ricchiuto, Chief Economist at Mizuho Securities: (SOUNDBITE) STEVEN RICCHIUTO, CHIEF ECONOMIST, MIZUHO SECURITIES, (ENGLISH) SAYING: "If the vote were to come out yes there would be an immediate release both by the UK government and by the EU government that says look this is a difficult process we are going to go through and we are going to hold everything unchanged and set up a long workout period to figure out how we are going to undo what we did. Because when they created these things they never created an exit clause." Economic reports included new data showing inflation remains tame. The producer price index rising 0.4 percent in May on higher energy costs. But PPI is down one tenth of one percent from a year ago. Core PPI, which takes out the volatile food and energy components, was up 0.8 percent year over year. A separate report showed U.S. manufacturing output unexpectedly fell in May, largely on a drop in motor vehicle and parts production. A third report from the New York Fed- its Empire State business conditions index- increased in June as new orders and shipments also swung into positive territory. Ahead of the Fed decision, European stocks snapped a five-day losing streak.