The Federal Reserve has spoken, and as far as investors are concerned, the message was clear - clearly hawkish. Investors in Asia go into Thursday on the defensive after the Fed cut interest rates by a quarter of a percentage point as expected, but signaled a slower pace of easing ahead.
According to preliminary data, the S&P 500 lost 2.96%, while the Nasdaq Composite lost 3.62% and the Dow Jones Industrial Average fell or 2.61%. The Dow and S&P saw their biggest one-day percentage decline since Aug. 5 and the Nasdaq saw its biggest daily decline since July 24. "Everything in the dot plot suggested that we have higher economic growth, a stronger labor market, more inflation, fewer Fed rate cuts and a higher neutral rate."
Micron Technology issued a revenue outlook that came in below analysts’ expectations, sending shares lower in extended trading Wednesday.
Steve Burns: Stocks are in the ‘greatest bubble in the history of civilization.’ He blames the Fed.
The move would bring the two struggling car companies together in a bid to reclaim market share from rising domestic brands in China, the world’s largest car market.
Other indexes tanked, as well.
Stocks eyed a rebound Wednesday, with the blue-chip Dow looking to snap its longest losing streak since 1978
(Reuters) -U.S. stock index futures edged up on Wednesday, as markets eagerly awaited the Federal Reserve's final rate decision of the year and signals on whether policymakers will take a more cautious stance in 2025. The Fed is widely expected to reduce interest rates by 25 basis points at its meeting. With a rate cut broadly priced in, the Fed's summary of economic projections (SEP), which includes the "dot plot" of rate projections, and comments from Chair Jerome Powell will be in focus for indications on the rate path in 2025.
John Petrides, Portfolio Manager at Tocqueville Asset Management, spoke with Quartz for the latest installment of our “Smart Investing” video series.
Central bank lowers benchmark federal funds rate by a quarter of a percentage point to between 4.25% to 4.5%