Stocks decline as Fed confirms economic slowdown

NEW YORK -U.S. stocks reversed gains after the Federal Reserve left its benchmark interest rate unchanged, as expected, and noted that U.S. economic growth slowed at the end of the year.

"The Fed did nothing to counter the prevailing view" of a slowdown in the U.S. and global economy, said Jim Russell, principal and portfolio manager at Bahl & Gaynor. "Markets continue to be on edge due to lower growth expectations."

That said, Russell believes Wall Street's decline is largely to due to corporate earnings, "which are coming in around expectations, but also represent a third quarter in a row of lower year-over-year S&P 500 earnings, with another quarter likely in 2016."

Technology stocks continued to lag the market after Apple predicted its first quarterly decline in revenue in 13 years. Shares of the iPhone (AAPL) maker fell nearly 7 percent to end the session at $93.42.

The Dow Jones industrial average (DJI) fell 223 points, or 1.4 percent, to 15,944.

The Standard & Poor's 500 index (SPX) dropped 21 points, or 1.1 percent, to 1,883. The Nasdaq composite (COMP) dropped 100 points, or 2.2 percent, to 4,468.