By Anora Mahmudova and Barbara Kollmeyer, MarketWatch

Energy, materials stocks sell off as oil slide resumes

NEW YORK (MarketWatch) -- U.S. stocks ended Wednesday's choppy trading session sharply lower after the Federal Reserve's policy-making committee reiterated it plans to remain patient and watch the data as it decides when to raise interest rates.

Sharp losses added to declines from Tuesday, when markets sold off after disappointing earnings and economic data. A renewed slide in oil prices Wednesday sent energy and materials stocks sharply lower.

The Fed gave no sign that it is wavering on hiking interest rates some time in the second half of 2015. The U.S. central bank was upbeat about the economy, while the policy makers repeated that they think inflation will move back to the 2% target after being pushed down by temporary factors.

The statement was taken as hawkish and sent the dollar and Treasurys sharply higher, as investors sought the safety of havens.

The S&P 500 (SPX) closed 27.39 points, or 1.4%, lower at 2,002.23, with all 10 main sectors finishing in the red. The energy sector fell 3.9%, as oil fell to lowest levels since March 2009.

The Dow Jones Industrial Average (DJI) dropped 195.84 points, or 1.1%, to 17,191.37, with 27 of its 30 components ending lower. Boeing Co (BA) was the top gainer, while Chevron (CVX) , Exxon Mobil Corp (XOM) and Microsoft (MSFT) were the laggards.

The Nasdaq Composite (RIXF) turned a big opening advance into a loss by the end of the session, falling 43.50 points, or 0.9%, to 4,637.99, as Apple's big gain was not enough to keep the index in the green.

Apple's earnings surprised even the most bullish analysts as the tech giant reported an $18 billion profit in the latest quarter, sending its share price up 5.7%.

Also read: Apple's secret weapon isn't a new product

Joseph Saluzzi, co-founder and co-head of equity trading at Themis Trading, said stocks reacted to big swings in currency and bond markets.

"Stock markets would like to see zero rates forever, but the Fed statement did not give them any hopes of that. Meanwhile, bond yields dropped dramatically, signalling that the economy is not doing as well as the Fed is suggesting," Saluzzi said.

Treasurys rallied after the announcement. The yield on 10-year Treasury notes, which moves inversely to prices, dropped 11 basis points to 1.72%.

Quincy Krosby, market strategist at Prudential Financial, said investors are realizing the Fed is intent on beginning to normalize interest rates.

"The Fed is very careful with their language in the statement, and they are signalling to the markets that they want to start raising rates sometime this year," Krosby said.

Goldman Sachs and others expect the first hike in short-term interest rates by September. But Ellen Zentner, an economist at Morgan Stanley, said Tuesday that she doesn't expect a Fed hike until March 2016, partly because the downward pressure on inflation is stronger than expected.

Apple earnings: Apple shares jumped 5.7% after the company reported another record for its flagship iPhone, with 74.5 million phones sold in the fiscal first quarter. Profit rose 38% to a record high.

Also read: This is what Apple analysts are worried about

Yahoo, Boeing in focus: Shares of Boeing (BA) gained 5.4% after the company's fourth-quarter earnings beat forecasts.

Yahoo Inc. (YHOO) initially jumped after the Internet search engine late Tuesday said it would spin off its Alibaba Group Holding Ltd. (BABA) stake into a separate publicly traded company. However, stock finished 3.2% lower.

U.S. Steel Corp. (X) jumped 11% after the steel producer's earnings topped Wall Street estimates.

Abiomed Inc. (ABMD) surged 29% after the medical device maker posted earnings that blew out Wall Street estimates.

On the downside, Ethan Allen Interiors Inc. (ETH) dropped 12% after releasing weaker-than-expected results from its holiday quarter.

Energy companies were selling off as oil prices fell nearly 4%. Among S&P 500 components, Nabors Industries (NBR) dropped 12%, while Denbury Resources (DNR) fell 9.4%.

Shake Shack Inc. (SHAK) raised the terms for its initial public offering and said it would offer 5.75 million shares to be priced at $17-$19 a share.

Overseas markets: Europe stocks ended mixed, with Greece suffering from another selloff after Prime Minister Alexis Tsipras stressed he will push for debt relief from the country's international creditors.

The Nikkei 225 index rose to a fresh one-month high.

Oil futures fell Wednesday after a larger-than-expected increase in U.S. crude supplies, which kept inventories at their highest level in 80 years. Light, sweet crude for March delivery (CLH5) dropped $1.78, or 3.9%, to $44.45 a barrel on the New York Mercantile Exchange. That was crude's lowest settlement since March 11, 2009.

Barclays cut its forecasts for WTI crude to $42 a barrel for 2015 from $66 and $57 a barrel for 2016. For Brent crude, Barclays cut its forecast to $44 a barrel for 2015 from $72 and forecast $60 for 2015.

Gold prices (GCG5) fell 0.5% to $1,285.90 an ounce as the U.S. central bank reiterated its commitment to raising interest rates some time in the latter part of the year.

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