Investor uncertainty ahead of the Federal Reserve's latest meeting fueled a decline in the Dow Jones Industrial Average, marking its longest losing streak since 1978. While a quarter-point rate cut is anticipated, investors await clues on the Fed's future policy stance and potential for aggressive rate reductions in 2025.
The Dow Jones Industrial Average slid to its worst losing streak in more than four decades as investor hopes that the Federal Reserve will aggressively cut interest rates next year continued to diminish. The central bankers wrap up their last two-day meeting of the year Wednesday, when they are widely expected to announce another quarter-point rate cut — the third this year.
But particular attention will paid to the Fed’s summary of economic projections (SEP) and comments from Chair Jerome Powell, which may indicate how aggressive the central bank will be in cutting rates in 2025. Fed Chair Jerome Powell is widely expected to announce a further quarter percentage point cut to the key borrowing rate. in an economy that appears to have solid momentum and sticky inflation, and as the incoming Trump administration is expected to impose policies to stimulate growth and potentially reignite rising prices. “This is just kind of standard fare for a pre-Fed day market where you have just a little bit of uncertainty, people are not sure how to position ahead of the SEP and ahead of Powell,” said Jason Ware, chief investment officer at Albion Financial Group in Salt Lake City, Utah.NYC seafood bastion Lure Fishbar faces boot for pushy Prada: sources “Everyone knows we’re getting 25 bps … what Powell is going to say at the press conference, what the SEP is going to tell us, those things people are not quite sure of so you have a little bit of jitters ahead of that.” On Tuesday, the blue-chip Dow fell 267.58 points, to 43,449.90 extending the longest losing streak since 1978. The S&P 500 lost 0.39% and closed at 6,050.61, while the Nasdaq Composite, which hit a record high on Monday, dipped.32% to end at 20,109.06. Some of the drop in the Dow can be attributed to profit-taking immediately after the 30-stock index hit a record high of 45,00
FEDERAL RESERVE INTEREST RATES DOW JONES MARKET VOLATILITY ECONOMIC OUTLOOK
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