* Fed maintains pace of bond purchases
* Adobe, FedEx shares rise after results
* Dow, S&P 500 and Nasdaq all fall 0.4 pct
By Ryan Vlastelica
NEW YORK, June 19 U.S. stocks fell on Wednesday,
with the losses accelerating even after the Federal Reserve said
it would hold steady with its monetary policy.
The central bank gave no explicit indication that it was
close to pulling back on its program to buy $85 billion in bonds
per month, a policy that has been a key to the market's rally
Investors have speculated the Fed might start drawing down
soon, contributing to a spate of volatility, though equities
advanced strongly on both Monday and Tuesday ahead of the
"The fact that this is status quo is enough to put a little
pressure on the market, largely because of the run-up we've seen
over the past few days," said Mark Luschini, chief investment
strategist at Janney Montgomery Scott in Philadelphia.
"This is something of a non-event statement. It didn't spook
markets in terms of advancing notions of tapering, but it
largely leans towards deferring that tapering until later this
The Dow Jones industrial average was down 58.02
points, or 0.38 percent, at 15,260.21. The Standard & Poor's 500
Index was down 6.39 points, or 0.39 percent, at 1,645.42.
The Nasdaq Composite Index was down 13.02 points, or
0.37 percent, at 3,469.16.
The S&P 500 has regained some losses in the last few days as
confidence increased that the Fed will leave the current
stimulus in place even if Bernanke nods at the need to begin
reducing bond purchases later in the year.
The stimulus helped the stock market reach a record high on
May 21, one day before Bernanke said the Fed could reduce its
bond-buying in the "next few meetings" if the economy gained
momentum. His comments rocked markets, boosting bond yields and
halting stocks' rally.
Despite the increased volatility of the past month, the
market has moved largely sideways. The S&P 500 closed on Tuesday
just 1 percent below its record high of 1,669.16 on May 21.
Shares of Adobe Systems Inc rose 6.8 percent to
$46.31 a day after the maker of Photoshop and Acrobat software
reported a higher-than-expected adjusted quarterly profit and
said demand rose for Creative Cloud, the subscription-based
version of its flagship software package.
FedEx Corp reported higher quarterly profit than
expected as its ground shipment business improved. It also said
jet fuel prices dropped. Shares were up 2.4 percent at $101.85.