US stocks slip on Fed inaction

US stocks slipped yesterday on disappointment that the Federal Reserve offered no new measures to stimulate the economy and after a computer glitch at a brokerage triggered a spike in volatility shortly after the open.

The market will now turn its focus to today’s highly anticipated European Central Bank amid expectations that the ECB could detail action to bring down rising borrowing costs in Italy and Spain in defence of the euro.

Fed officials described the US economy as having “decelerated somewhat,” but stopped short of new stimulus.

The Dow Jones industrial average fell 32.55 points, or 0.25 per cent, to 12,976.13. The S&P 500 Index slipped 4.00 points, or 0.29 per cent, to 1,375.32. The Nasdaq Composite lost 19.31 points, or 0.66 per cent, to 2,920.21.