A late-session dive in stocks pushed exchange traded funds firmly into the red Wednesday after the Federal Reserve stood pat on interest rates, but said the economy has slowed in recent months.
PowerShares QQQ (NasdaqGM: QQQ), an ETF following the Nasdaq-100, slipped 0.7%, in line with the other major equity indicators. Weakness in Adobe (NasdaqGS: ADBE) and Intel (NasdaqGS: INTC) dragged on the tech sector. [Adobe, RIM Hinder Nasdaq-100 ETF]
Stock investors may have been disappointed by the Fed or Ben Bernanke in a press conference not dropping any firm hints that a third round of quantitative easing, or QE3, is coming. The Fed has provided massive fiscal stimulus to help speed the recovery after the credit crisis.
Financial ETFs traded lower Wednesday after recently suffering a bearish technical signal. [Financial ETFs Make ‘Death Cross’]
In currencies, euro ETFs weakened versus the dollar. Investors shaken by Europe’s credit crisis have looked for safety in an ETF following the Swiss franc. [ETF Spotlight]
In commodities markets, grains and agriculture ETFs fell sharply Wednesday on weather reports and speculation in the dollar, according to reports. [Grains, Corn ETFs Down]