US stocks finished with losses on Thursday amid concerns that the Fed's latest move to purchase long-term US Treasury bonds would not rescue the economy out of ongoing economic recession.

The Dow Jones Industrial Average shed 85.78 points or 1.15% to finish at 7,400.80. The S&P 500 lost 10.31 points or 1.30% to end at 784.04. The Nasdaq Composite fell 7.74 points or 0.52% to 1,483.48.

On Wednesday, the US Federal Reserve announced that it would purchase $300 billion in longer-term Treasury bonds in order to rescue the U.S. economy from deepening recession. The central bank said that it would also buy an additional $750 billion of agency mortgage-backed securities to provide greater support to mortgage lending and housing markets.

Shares of Financials finished with steep losses on Thursday. Citigroup Inc. (NYSE: C) tumbled 48 cents or 15.58% to $2.60. On Thursday, Citigroup announced that it is seeking shareholder approval to both boost the number of shares outstanding and execute a reverse stock split. Bank of America (NYSE: BAC) plunged 74 cents or 9.65% to $7.24. J.P Morgan (NYSE: JPM) plummeted $2.16 or 7.97% to $24.95. American Express Co. (NYSE: AXP) lost $1.02 or 7.24% to end at $13.07 after Standard & Poor's Ratings Services placed credit card lenders' ratings on review for possible downgrade.

Insurance stocks were battered. Prudential Financial Inc. (NYSE: PRU) slid $6.16 or 24.72% to $18.76.Lincoln National Corp. (NYSE: LNC) decreased $1.41 or 14.92% to $8.04. Metlife Inc. (NYSE: MET) slumped $3.17 or 12.40% to $22.39.

Drugmaker Pfizer (NYSE: PFE) retreated 55 cents or 3.86% to $13.70.

Shares of consumer giant Procter & Gamble Co. (NYSE: PG) slipped $1.71 or 3.56% to $46.31.

Alcoa (NYSE: AA) soared 92 cents or 16.79% to $6.40.The largest US aluminum maker yesterday announced that it will sell 150 million shares of common stock at $5.25 each in order to boost liquidity.

General Motors (NYSE: GM) climbed 23 cents or 8.71% to $2.87.

Networking giant Cisco (NASDAQ: CSCO) announced on Thursday that it will acquire Pure Digital Technologies, creator of the popular Flip Video cameras, for $590 million. Shares of Cisco fell 27 cents or 1.64% to $16.23.

FedEx Corp. (NYSE:FDX) jumped $2.05 or 4.76% to $45.10 after it said that its fiscal third quarter net income declined to $97 million, or 31 cents a share, from $393 million, or $1.26 a share, in the same quarter, a year ago. Quarterly revenue slipped 14% to $8.14 billion from $9.44 billion.  

Oracle Corp.