From Financial Modeling Prep: 2024-12-19 01:51:35

U.S. markets plunged on Wednesday after the Federal Reserve’s hawkish stance on rate cuts overshadowed a 25 bps reduction, leading to widespread losses. Dow Jones fell 2.6%, S&P 500 declined 3%, Nasdaq slipped 3.6%. The Fed cut rates to 4.25%-4.5% but now projects only two cuts in 2025, impacting Treasury yields and individual stocks like NVIDIA, Tesla, Jabil Circuit, General Mills, and Birkenstock Holding. The cautious Fed approach reflects inflation risks, potentially signaling slower economic growth and higher borrowing costs, tightening financial conditions and increasing market volatility. Investors are sensitive to monetary policy signals and the challenging path toward rate normalization.



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