The Federal Reserve cut interest rates by 25 basis points this afternoon, as expected, but stocks and bond yields did not react well to the central bank’s interest rate outlook. Once the Fed’s vaunted “dot plot” forecasted a fewer-than-expected two rate cuts for 2025, all three major indexes pivoted sharply lower, while the 10-year Treasury yield spiked to 4.47%. The selloff was exacerbated by cautionary rhetoric from Fed Chair Jerome Powell. The Dow shed 1,123 points — its worst single-day decline since September 2022 — for its 10th straight loss and longest losing streak since 1974. The S&P 500 and Nasdaq also gapped lower to their respective 6,000 and 20,000 levels, suffering their worst single-session slides since 2020.
GOLD PRICES PULL BACK AGAINST THE DOLLAR
Oil prices bounced back today, getting a much-needed lift from the second-straight weekly fall in U.S. crude inventories. January-dated West Texas Intermediate (WTI) crude added $1, or 1.4%, to settle at $71.08 per barrel.Gold prices fell as the dollar roared to life at the Fed rhetoric implying a slower pace of rate cuts. For the session, gold for December delivery lost 0.3% to settle at $2,653.30 an ounce.More By This Author:Stocks Rise Ahead Of Interest-Rate Update
Dow Stuck In Worst Losing Streak In 46 Years
Dow On Track For Longest Losing Streak Since 1970’s
