From Barchart: 2024-12-19 01:54:17

The Federal Reserve’s quarter-point rate cut and hawkish outlook led to tech stock declines, with Tesla falling 8.3%, Broadcom down 6.9%, and NVIDIA sliding 1.1%. The Fed slowed its rate-cut pace, causing higher Treasury yields and market declines. Future rate cuts will be data-dependent, with two cuts projected for 2025.

The FOMC cut its target federal funds rate to 4.25%-4.50%. The Fed’s longer-run terminal rate was revised upward to 3.0%, and inflation forecasts increased through 2026. Unemployment and GDP growth outlooks improved for 2024-2025.

The tech-heavy Nasdaq and other indices faced losses as rising Treasury yields impacted growth-oriented stocks. The Fed’s cautious tone reflects inflation concerns and a strong economy, hinting at tighter financial conditions in 2024 and beyond. Investors can track market trends, sector performance, and upcoming economic events for insights.



Read more at Barchart:: Tech Stocks Slide as Fed Signals Cautious Rate Cuts