Dow futures are little changed after index drops 1,100 points in 10th straight loss: Live updates
Published On Dec 18, 2024, 6:13 PM
The market faced significant volatility after the Federal Reserve indicated a more cautious approach towards future interest rate cuts, suggesting only two reductions in the next year instead of the previously anticipated four. The news caused major sell-offs, particularly impacting tech stocks. The Dow Jones fell by over 1,100 points, marking its worst performance in nearly a year. Micron Technology reported weaker-than-expected guidance, leading to a significant drop in its stock price after hours. Concerns about inflation and interest rates continue to shape market sentiment, contributing to uncertainty among investors.
Stock Forecasts
MU
Negative
Investors may want to remain cautious given the ongoing volatility and the Fed's reluctance to cut rates aggressively, which could further pressure growth stocks and tech sectors. Micron Technology's disappointing guidance signals potential weakness in the semiconductor industry, suggesting short-term bearish sentiment.
SPY
Neutral
With the current market conditions and the Fed's stance, investors may consider shifting towards more defensive positions or sectors traditionally seen as safe havens. Additionally, cryptocurrencies might experience fluctuations, but long-term adoption could provide upside potential as investors seek hedge options.
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