Dow dives more than 450 points to close at 14-month low

Stocks sank for a second day Thursday after the Federal Reserve raised benchmark interest rates and said that it would continue to let its massive balance sheet shrink at the current pace. Fears of a government shutdown also sent stocks tumbling to new lows Thursday afternoon.

The Dow closed 464 points lower, bringing its two-day declines to more than 800 points and its 5-day losses to more than 1,700 points. The S&P 500 shed 1.6 percent as technology stocks underperformed. The Nasdaq also lost 1.6 percent, into bear market territory amid big losses in Amazon and Apple. Companies in the S&P 500 have lost a total of $2.39 trillion in market cap this month. The Cboe Volatility Index — one of the market's best gauges of marketplace fear — rose above 30.

Stocks fell to the low for the day after U.S. House of Representatives Speaker Paul Ryan announced that President Donald Trump would not sign a temporary government funding resolution.

The moves Thursday came one day after the Fed decided to hike its benchmark overnight lending rate by one quarter point in the prior session. The Dow fell more than 350 points following the Fed's decision and pushed the major indexes to new lows for the year.

Commenting on the central bank's decision, renowned hedge fund manager David Tepper said in an email to CNBC's Joe Kernen that Powell "basically told you the Fed put is dead" and that "cash is not so bad" as an investment.

"The Fed doesn't care about the stock market within 400 SPX (S&P 500) points," Tepper added in the email. "It's the real economy, stupid."

https://www.msn.com/en-us/money/markets/dow-dives-more-than-450-points-to-close-at-14-month-low/ar-BBRcHp2