NEW YORK, Aug. 11 (UPI) -- U.S. markets charged lower Wednesday morning after the U.S. Federal Reserve said the economic recovery had lost its momentum.
The Fed said Tuesday it would re-invest in long-term Treasury securities to provide stimulus to a flagging recovery marked by constrained credit, high unemployment and a housing market slump.
In midmorning trading, the Dow Jones industrial average shed 197 points, 1.85 percent, to 10,447.25. The Standard & Poor's 500 index lost 2.11 percent, 23.62 points, to 1,097.44. The Nasdaq composite index fell 2.27 percent, 51.58, to 2,225.49.
The benchmark 10-year U.S. Treasury note rose 14/32 to yield 2.719, a response to the Fed's new purchasing program, which is likely to add $10 billion per month to the bond market.
The euro fell to $1.2937 from Tuesday's $1.3184. Against the yen, the dollar fell to 85.02 yen from Tuesday's 85.36 yen.
In Japan, the Nikkei 225 index lost 2.7 percent, 258.20, to 9,292.85.
