Stock market today: Dow, S&P 500, Nasdaq clobbered as Fed, Powell signal fewer rate cuts in 2025

Published On Dec 18, 2024, 4:03 PM

Following the Federal Reserve's decision to cut interest rates by 25 basis points, stock markets experienced significant declines. The Dow Jones fell about 2.6%, marking its longest losing streak since 1974, while the S&P 500 and Nasdaq Composite dropped roughly 3% and over 3.5%, respectively. The Fed indicative of a more cautious approach towards future rate cuts, predicting only two cuts next year instead of the previously expected four, alongside upward adjustments to inflation and economic growth forecasts. While the economic outlook remains solid, uncertainty exists regarding inflation and potential impacts from political factors, such as the upcoming presidential election.