Stock Plummet Felt Globally

Wall Street is scrambling following Tuesday's news that the Fed will use funds from its mortgage-bond portfolio to buy $10 billion a month in long-term Treasury securities. At market's close, the Dow Jones Industrial Average was down 265.42 points, or 2.49 percent, Nasdaq fell 68.54 points, or 3 percent, and Treasury bond prices continued to rise as yields reached record lows for the year. Many financial analysts see the Fed's action as both insufficient and an indicator of the economy's bleak outlook. "It actually shakes confidence and raises questions about the future," said one market strategist. News out of China that its economy has slowed considerably of late also contributed to the equity markets' sharp fall.