Stock market today: Dow, S&P, Nasdaq slide as Fed cuts rates, signals 2 more reductions in 2025

Published On Dec 18, 2024, 2:29 PM

The Federal Reserve has cut interest rates by 25 basis points, signaling fewer cuts in 2025 than previously expected. This decision led to a decline in major stock indexes, notably the Dow Jones experiencing its longest losing streak in nearly 50 years, affected primarily by headwinds in healthcare stocks like UnitedHealth Group and technology stocks like Nvidia facing competition. Despite the downturn, Nvidia shares recovered slightly following news of potential revenue generation from cloud services. The Fed's updated economic forecasts indicate a higher expected inflation rate and economic growth, which may imply continued cautiousness in the markets.

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Stock Forecasts

NVDAView NVDA chart on TradingView

Positive

Interest rates being reduced could support economic growth and potentially benefit healthcare and technology stocks in the longer term. However, the short-term pressures from ongoing losses in major indices as investors digest the implications of slower rate cuts in 2025 may keep these stocks under pressure.

UNHView UNH chart on TradingView

Negative

While the short-term bearish sentiment prevails, the relative strength shown by Nvidia and its potential ventures into cloud services could lead to a rebound as the market adjusts. Healthcare stocks, particularly facing uncertainties like leadership changes, might continue to decline until stabilization occurs.

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