Wall Street extends losses on Fed fears

Wall Street extended losses on Wednesday as fears deepened that the Federal Reserve will pull back its quantitative easing programme.

All but two sectors in the S&P 500 were down more than 1% on Wednesday, with the index dropping 1.38% to close at 1,609. The Dow Jones shed 217 points, or 1.43%, to close at 14,961 and the Nasdaq dropped 1.27% in the biggest sell-off in percentage terms in six weeks. Economic data in the US has been mixed. A recent report showed companies had picked up the hiring pace in May, but job growth remained sluggish; the Fed's Beige Book report said the economy grew at a "modest to moderate" pace since mid-April. The mixed messages have left investors worrying the Fed might stem QE on impr...