By Free Republic | Created at 2024-12-18 20:44:36 | Updated at 2024-12-18 23:56:39
3 hours ago
Dow loses 600 points as Fed rate outlook disappoints, heads for first 10-day losing streak since ’74: Live updates
CNBC ^ | 12/18/24 | Brian Evans & Lisa Kailai Han
Posted on 12/18/2024 12:40:27 PM PST by CFW
The Dow Jones Industrial Average sank deeper into the history books on Wednesday, with the storied index on track for its 10th straight losing day following a disappointing rate outlook by the Federal Reserve.
The Dow lost 624 points, or 1.4%, on track for its worst losing streak since an 11-day slide in 1974. The 30-stock average posted a nine-day losing streak on Tuesday, its longest since 1978. The S&P 500 lost 1.5% and the Nasdaq Composite shed 1.9%.
The central bank reduced its overnight borrowing rate by 25 basis points to a target range of 4.25% to 4.5%, as expected. However, the Fed indicated it would only cut rates twice in 2025, according to its closely watched “dot plot,” fewer than the four cuts given in its last forecast. Fed Chair Jerome Powell said the central bank’s move to cut rates in recent months allows it to “be more cautious as we consider more adjustments to our policy rate.”
The odds of a rate cut at the Fed’s next meeting in January fell to just 11%, according to fed funds futures trading via the CME FedWatch tool. Before Wednesday, traders were hoping the Fed would stay aggressive with rate cuts in 2025, fueling the bull market further. Treasury yields jumped following the Fed’s cautious outlook, pressuring share prices.
(Excerpt) Read more at cnbc.com ...
TOPICS: Business/Economy; Front Page News; Government; News/Current Events
KEYWORDS: cr; dow; interestrates; powell
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The Nasdaq is down 1.5%; the Nas100 down over 3% (-600pts).
Gold is down almost $60 and silver down over a dollar.
The feds dropped the interest rate .25% as expected, but something obviously was said or done that seriously spooked the markets. Maybe change in outlook for next year. Maybe it is the uproar over the CR in conjunction with Powell's remarks.
But, all the markets are continuing to fall.
1 posted on 12/18/2024 12:40:27 PM PST by CFW
To: CFW
The tech heavy NAS100 is now down almost 800 points and continuing to fall.
2 posted on 12/18/2024 12:41:19 PM PST by CFW
To: CFW
3 posted on 12/18/2024 12:43:38 PM PST by fwdude (Why is there a "far/radical right," but damned if they'll admit that there is a far/radical left?)
To: CFW
People still wanting unneeded rate cuts. They’ll come to their senses eventually. The Fed rate is lower now than at any time in the last two years.
4 posted on 12/18/2024 12:43:48 PM PST by SaxxonWoods (Black guy upon receiving a MAGA hat: "MURICA!")
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