U.S. stocks keep falling amid Fed statement

U.S. stocks extended losses on Wednesday, as investors digested the Federal Reserve's decision to leave interest rates unchanged.

The Dow Jones Industrial Average dipped 77.46 points, or 0.43 percent, to 17,959.64. The S&P 500 lost 13.78 points, or 0.65 percent, to 2,097.94. The Nasdaq Composite Index declined 48.01 points, or 0.93 percent, to 5,105.57.

The U.S. central bank left interest rates unchanged after the conclusion of its two-day policy meeting Wednesday, amid uncertainty about market reactions to the outcome of the U.S. presidential election on Nov. 8.

"The Committee judges that the case for an increase in the federal funds rate has continued to strengthen but decided, for the time being, to wait for some further evidence of continued progress toward its objectives," the Fed's policy-making committee said in a statement.

The Fed, however, signaled that the central bank could raise rates as soon as December because officials saw a pick-up in the U.S. economy and inflation.

"Whether it makes sense to raise rates with a weaker economic assessment and too low inflation is almost moot. The Fed clearly believes inflation will rise and 'the case for a tightening continued to strengthen'," said Chris Low, chief economist at FTN Financial.

"The December rate hike option remains on the table, though the FOMC refused to take the bait and make it a slam dunk," he said.

On the economic front, U.S. private sector employment increased by 147,000 jobs from September to October, missing market consensus, according to the October ADP National Employment Report Wednesday.

The ADP figure is watched closely as a pre-indicator for the non-farm payrolls report due out on Friday. Endit