Stocks extended losses for the sixth straight day on Wednesday as investors worried that a slowing economy could deepen the market's retreat.
The latest evidence of a slowdown came in the Federal Reserve's Beige Book, which gives an anecdotal report on the economy. It reinforced Fed chief Ben Bernanke's bearish assessment on growth delivered late on Tuesday.
The market's mood soured when Bernanke gave no hint that the central bank would offer a third round of stimulus to an economy losing steam. The Beige Book said costlier food and energy prices as well as supply disruptions stemming from Japan's earthquake were taking a toll.
Stocks are still up for the year, but the market's recent slide has taken a big bite out of those gains.
The Dow, which on May 2nd was up 10.6 percent for the year when it hit its 2011 closing high, is now up just 4.1 percent.
The S&P 500, which had climbed as much as 8.2 percent for the year at its 2011 closing high on May 2nd, is now up just 1.7 percent. And the Nasdaq, which on May 2nd was up 8 percent for the year when it set its 2011 closing high, is now up only 0.9 percent.
Stocks have come under pressure recently due to a slew of weak economic data, especially in the labor market.
"Investors are re-pricing the slowdown after Bernanke crystallized it," said Jason L. Ware, senior equity research and trading analyst at Albion Financial Group in Salt Lake City, Utah.
On top of that, "the market was hoping for an indication that there may be another round of stimulus but clearly, that's not what they got."
The Fed's $600 billion second round of stimulus, expected to end this month, has been a catalyst for the stock market's advance.
Dow Jones Industrial Average
(DJI: ^DJI )| Index Value: | 12,048.94 |
|---|---|
| Trade Time: | 4:02PM EDT |
| Change: |  21.87 (0.18%) |
| Prev Close: | 12,070.81 |
|---|---|
| Open: | 12,066.27 |
| Day's Range: | 12,024.26 -12,098.36 |
| 52wk Range: | 9,596.04 -12,928.50 |
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