The merrymaking and the parties on Wall Street turned somber last week as investors digested the Federal Reserve’s hawkish surprise. Market sentiment soured, triggering the year’s biggest market rout on Wednesday as policymakers signaled fewer rate cuts next year than anticipated.
The S&P 500 plunged by three percent in its worst decline since August, while the Nasdaq Composite tumbled by 3.6 percent, erasing two weeks of gains. The Dow Jones Industrial Average extended its losing streak to 10 consecutive days – the longest since the 1970s – tumbling by 2.6 percent as investors fled risk assets.
Powell delivered Scrooge
The market wanted Santa, but Powell delivered Scrooge. While the Fed delivered its anticipated quarter-point cut, the surprise came in the dot plot – showing only two rate reductions planned for 2025.
This is a stark downgrade from September’s projection of four. Fourteen of 19 Federal Open Market Committee (FOMC) officials aligned behind this more restrictive outlook, leaving just five members forecasting a deeper easing cycle.
Tech sector leads market decline
Esta historia es de la edición December 23, 2024 de The Philippine Star.
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Esta historia es de la edición December 23, 2024 de The Philippine Star.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
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ART'S HEROES AND ZEROES
2024's defining moments in art and history.
FAMILY TAPESTRIES
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The family Christmas tradition in Baguio
Two weeks ago, our family went on our annual Christmas trip to Baguio from Dec. 12 to 15.
Ateneo Art Gallery presents PKL Prize winners and unveils return exhibition of the Ateneo Art Awards 2024
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MMFF PRODUCERS HOPEFUL FOR AUDIENCE SUPPORT
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Take it from Kim Chiu: Celebrate the small wins
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Nomura: BSP likely to deliver three rate cuts in early 2025
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ACMobility takes over EV charger locator
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Holiday exodus
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ADB OKs $500-M loan for employment recovery
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