Er...stock market just dropped 1,000 points.
A Powell effect!!
Stock market today: Dow, S&P 500, Nasdaq clobbered as Fed, Powell signal fewer rate cuts in 2025
Stocks were clobbered Wednesday after the Federal Reserve, despite
slashing interest rates by 25 basis points, signaled it would cut fewer times next year than previously projected.
All three major reversed gains following the decision to end with steep losses. The Dow Jones Industrial Average (
^DJI) was down about 2.6%, or over 1,000 points, clinching its 10th straight down session, the longest losing streak since 1974. Meanwhile, the S&P 500 (
^GSPC) fell roughly 3%, and tech-heavy Nasdaq Composite (
^IXIC) slid more than 3.5%.
Ten Fed officials
estimated two interest rate cuts next year, fewer than four seen in September, as officials marked up their projections for core inflation and economic growth next year, while lowering their forecast for the unemployment rate in 2025.
"The slower pace of cuts for next year really reflects both the higher inflation readings we had this year and the expectation inflation will be higher," Fed Chair Jerome Powell said. He added later that as long as the economy and labor market remain "solid," "we can be cautious as we consider further cuts."
Greg
