The Dow Jones Industrial Average broke a half-century record for futility on Wednesday, suffering losses for the 10th consecutive session on the heels of the Federal Reserve’s 0.25% interest rate cut.
The Dow Jones dropped 1,123.03 points ( down 2.58%), a decline that was hastened by the Fed’s decision to take a more cautious approach to interest rate cuts amid recent unfavorable inflation and unemployment reports, according to CNBC.
The S&P 500 fell 178.57 points (down 2.95%) and the Nasdaq Composite dropped 716.37 points (down 3.56%), also sustaining big losses in response to the Fed’s announcement.
Powell told investors to expect only two rounds of rate cuts in 2025 compared to the four previously mentioned — a more conservative strategy than investors hoped to see.
“I would say today was a closer call, but we decided it was the right call because we thought it was the best decision to foster achievement of both of our goals,” Fed chair Jerome Powell said of the cut, vowing to “be more cautious as we consider more adjustments to our policy rate.”
While the rate cut was the driving force behind Wednesday’s market decreases, the Dow Jones has been fading through the month of December. Analysts point to a shift toward tech stocks for the Dow’s recent decline.
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