Fed's hawkish outlook and concerns about stagflation led to significant stock market selloff

From Investing.com: 2024-12-19 15:33:00

Yesterday, the Fed’s hawkish outlook for 2025 caused a significant selloff, with only two small rate cuts totaling 0.5% planned for the year. Concerns about stagflation are rising, despite hopes that AI excitement might help. The S&P 500 dropped nearly 3%, the largest one-day decline since August. The saw a 74% surge, its 2nd largest daily jump, contributing to a 13-day streak of more components closing lower than higher. Wall Street is facing hurdles in its recovery, with renewed selling pressure due to concerns about rising US Treasury Yields in 2025. Technical analysis shows a break in bullish structure for the S&P 500, with resistance at 5910. A daily close above 5871 could signal further upside, but a close below could lead to more downside. Investors are advised to keep an eye on US yields.



Read more at Investing.com: Stagflation Fears and Soaring US Yields: Stock Market’s Next Move