Investors disappointed by the U.S. Federal Reserve’s decision to leave interest rates alone pushed stock markets down Tuesday. The S&P/TSX index edged lower 42.46 points to 6,528.98.

Industrials led all indices lower – falling 3.43% – with airline-related stocks accounting for a big part of that decline.

The bankruptcy filing of US Airways and a big job-cut announcement from American Airlines had investors thinking that a rebound in the health of the airline industry could be some time off.

Air Canada fell 36¢ to $5.65, discount carrier WestJet Airlines lost $1.05 to $19.05 and CAE Inc., which makes flight simulators and trains airline pilots, shed $1.04 to $6.05.

Bombardier shares fell 96¢ to $9.04. It was the most actively traded issue in Toronto with more than 11.9 million shares changing hand

Other losers among industrials included Magellan Aerospace, down 20¢ to $5.40, Canadian National Railway, off $1.31 to $72.99, and Ballard Power Systems, $1.43 lower at $21.25.

The telecommunications sector was ahead 0.85% as Telus Corp. advanced 19 cents to $7.95.

The information technology sector fell 0.7%. ATI Technologies slipped 59¢ to $9.96.

Bank stocks reacted negatively to the Fed’s decision, dragging the financial group down nearly 1%.

Royal Bank slipped 38¢ to $53.18, while National fell 72¢ to $30.99.

Co-Steel Inc. lost ground after it announced a merger agreement with Brazilian steelmaker Gerdau SA of Rio de Janeiro that will create a business with more than $2.5 billion in annual revenue and 4,800 employees. Co-Steel shares were down 43¢ at $3.65.

Toronto volume was 125.8 million shares as decliners beat advancers 551 to 483. with 201 unchanged.

The junior TSX Venture Exchange gave up 9.53 points at 1,025.43.

In New York, the Dow Jones industrial average dropped 206.5 points to 8,482.39. The tech-heavy Nasdaq composite index gave up 37.57 points to 1,269.27. The S&P 500 index fell 19.59 points to 884.21.

The decision to stand pat on U.S. interest rates was good news for the Canadian dollar, which rose 0.38¢ to US63.91¢.