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- Dow falls 1,100 points on disappointing Fed interest rate news (newsbreak.com)
Wall Street Plummets as Fed Hints at Fewer Rate Cuts
The stock market experienced a sharp decline on Wednesday after the Federal Reserve (Fed) indicated it may cut interest rates less than anticipated in 2025.
The Dow Jones Industrial Average dropped over 1,100 points, while the S&P 500 and Nasdaq Composite both lost around 3%. The S&P 500 and Nasdaq had recently hit record highs in anticipation of rate cuts.
The Fed lowered rates by a quarter point as expected, but its forecast for fewer cuts in 2025 surprised investors. This adjustment was driven by concerns over rising inflation.
Analysts now predict just two rate cuts in 2025, down from the previous estimate of four. The market reacted negatively to this news, fearing it could end the current bull market.
Some analysts believe the market overreacted, while others emphasize the Fed’s concerns about inflation. The sell-off could pave the way for a “Santa Rally” in the coming week as investors look to close out the year on a positive note.
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- Dow falls 1,100 points on disappointing Fed interest rate news (newsbreak.com)