By Jeff Sanford

(December 19 – 18:30 ET) – The U.S. Federal Reserve’s indication that the U.S. economy was slowing, signalling that the central bank might cut rates soon, had an odd effect on the markets today. They dropped.

Investors continued to crowd the exits after Greenspan indicated the sell-off in techs might lead to a sharp downtown. Some were also disappointed the Fed didn’t cut rates today.

The TSE 300 dropped 122.26 points, or 1.36%, to close at 8,886.37.

Most of that decline was a result of the 4.51% drop in the industrial products sub-index. Other sub-indicies finishing lower were consumer products, communications, oil and gas, real estate and utilities, though, none of them dipped more than 1%.

On the upside, pipelines, metals, financial services inched up over 1%. The safety of the gold sector drew investors in and moved it up 2.22%.

Among individual issues, volume was 182.7 million shares. Decliners outpaced advancers 654 to 466.

Nortel Networks was off 6.47% on the day, closing at $52. JDS Uniphase was way down, plunging 10.50% to close at $81.

Itemus was off a drastic 21.82% at 43¢.

Profit takers stepped in and took high flying Manulife down 1.44% to $44.60. Mackenzie was also down on the day. It edged down 3.53% to $26. Sun Life, though, did well gaining 3.18% to close at $37.35.

Placer Dome benefited from the run on gold today, rising 4.48% to $15.15. Barrick was up 3.11% to $25.20.

Husky dropped 3% to close at $14.55.

The CDNX was also down on the day. It closed off 59.37% at 2.774.17. Volume was heavy, with 56 million shares trading. Decliners handily outpaced advancers, 453 to 268.

The loonie climbed 0.29% today to close at US65.72¢ U.S.

In the New York, following in the wake of the Fed announcement, the Dow dropped 61.05 points, or 0.57%, to close at 10,584,37.

The Nasdaq composite and the S&P 500 both finished at 52-week lows. The Nasdaq fell 112.82 points, or 4.30%, to 2,511.70. The S&P 500 shed 17.14 points to 1,305.60.