Stocks down on news that economy is slowing

Stocks sank Wednesday after the Federal Reserve gave a cautious assessment of the global economy and said growth in the U.S. has slowed down.

The statement from the Fed smothered a small rally in stocks earlier in the day. In addition to lowering its view of the U.S. economy, the Fed didn't say whether it will respond to those and other concerns by slowing down its planned increases in interest rates.

Investors sold tech stocks, already under pressure following a shaky outlook from Apple, as well as consumer stocks such as travel booking sites and cruise lines. They bought conservative, dividend-paying stocks such as telecommunications companies and utility providers.

The Dow Jones industrial average fell 222.77 points, or 1.4 percent, to 15,944.46. A large chunk of that loss belonged to Apple and to Boeing, which gave a disappointing 2016 outlook and suffered its biggest one-day loss in 14 years.

The Standard & Poor's 500 index sank 20.68 points, or 1.1 percent, to 1,882.95. The slump in tech stocks hammered the Nasdaq composite index, which lost 99.51 points, or 2.2 percent, to 4,468.17.

The Federal Reserve said it is watching developments in the world economy and financial markets and how they might affect the U.S. economy. It also said U.S. economic growth had slowed down. Few expected the Fed to raise interest rates this week because it just raised them last month.

Even if the U.S. economy has slowed, it's been growing steadily for years while other major economies such as China, Europe and Japan have struggled. Partly for that reason, the dollar has gotten very strong compared with other global currencies, making U.S. exports more expensive and imports cheaper.

That's one of the big problems facing Apple. Tim Cook, CEO of the world's most valuable publicly traded company, said the dollar is having an "extreme" effect on its sales in almost every country. Apple also said iPhone sales set another record in its latest quarter, but sales growth slowed down. It predicted a revenue decline in the current quarter, something that hasn't happened in 13 years. The stock gave up $6.57, or 6.6 percent, to $93.42.

The price of crude rose as investors hoped for cuts in fuel production. On Wednesday, the head of Russia's state oil pipeline monopoly said talks with OPEC and Saudi Arabia are in the works. Oil prices have plunged over the last year and a half because global supply is outstripping demand, creating a gigantic fuel glut.

Benchmark U.S. crude rose 85 cents, or 2.7 percent, to close at $32.30 a barrel in New York. Brent crude, the benchmark for international oils, rose $1.30, or 4.1 percent, to $31.10 a barrel in London.

Aerospace and defense giant Boeing fell after its profit forecast came up short of analysts' projections. The company also said aircraft deliveries will slip this year. Textron, which makes Cessna planes and Bell helicopters, also tumbled after its fourth-quarter profit and sales disappointed investors.

Boeing stock lost $11.43, or 8.9 percent, to $116.58, its lowest closing price in more than two years. Textron fell $5.04, or 13.4 percent, to $32.69.