Bernanke and China send world stocks lower

[yota691]

Bernanke and China send world stocks lower

By CNNMoney Staff @CNNMoneyInvest June 20, 2013: 5:23 AM ET

• 

U.S. stocks fell Wednesday after Fed chairman Ben Bernanke spelled out his plans to begin reducing stimulus.

NEW YORK (CNNMoney)

Investors may be in for a Bernanke hangover on Thursday.

U.S. stock futures were weaker across the board ahead of the opening bell, with S&P futures down 0.7%.

And world stock markets were deeply in the red as investors took fright at plans by the Federal Reserve to begin reducing the pace of stimulus toward the end of this year.

A weak reading on China's factories further rattled investors as it stoked concerns about slowing growth in the world's second biggest economy.

Stocks tumbled Wednesday after Fed chairman Ben Bernanke said the central bank could slow the pace of its bond-buying program later this year if the economy continues to improve.

Bernanke stressed that these plans will be adjusted if the recovery doesn't continue as expected, but that was no comfort to investors, as the Dow and S&P 500 tumbled 1.4%.

On Thursday morning, the government is scheduled to release its weekly report on initial jobless claims at 8:30 a.m. ET, while the National Association of Realtors will publish its monthly report on existing home sales at 10:00.