* Fed set for $10 billion taper; announcement 2:00 p.m. EST
* South Africa raises rates for first time in 6 years
* Boeing, Yahoo fall after results
* Indexes off: Dow 0.8 pct; S&P 0.7 pct; Nasdaq 0.8 pct
By Angela Moon
NEW YORK, Jan 29 Wall Street stocks fell on
Wednesday as concerns about the impact of a possible cut in the
U.S. Federal Reserve's monthly bond-buying program kept
Global equity markets got an early boost from Turkey's
central bank, which stunned investors late Tuesday with a
dramatic rate hike designed to defend its crumbling currency.
But the euphoria quickly faded as the market's focus shifted to
Fed's decision, due at 2 p.m. ET.
Ahead of the opening bell on Wall Street, South Africa's
Reserve Bank raised interest rates for the first time in nearly
six years, in step with other emerging market economies that
have tightened monetary policy to shore up their declining
"Our markets are so linked together that if something pulls
a trigger, it's like a domino effect. We are not exactly sure
how one would impact (the decision of) but things happen fast
and investors get quickly nervous," said Joe Saluzzi, co-head of
equity trading at Themis Trading in New York.
The Dow Jones industrial average fell 122.65 points
or 0.77 percent, to 15,805.91, the S&P 500 lost 12.42
points or 0.69 percent, to 1,780.08 and the Nasdaq Composite
dropped 30.844 points or 0.75 percent, to 4,067.119.
In earnings, Boeing Inc shares fell 5 percent to
$130.27 despite reporting a 26 jump in quarterly profit due to a
rise in commercial aircraft deliveries.
Dow Chemical Co shares rose 5.8 percent to $45.56
after raising its dividend 15 percent and expanding its share
buyback program to $4.5 billion from $1.5 billion. Quarterly
profit was well ahead of expectations.
Yahoo Inc shares plunged 6.5 percent to $35.70 a
day after announcing a decline in online ad prices which hurt
its revenue for a fourth consecutive quarter. Alibaba, the
Chinese e-commerce giant in which it owns a big stake, saw
revenue growth decelerate.