Dow Jones extended its decline as the Fed continued to make a decision to cut interest rates by 0.25%; and, the Fed signaled that it could cut lower in 2025.
The Dow Jones Industrial Average fell 1,123.03 points, or 2,581 points, to 42,326.87 at the close of trading on Wednesday. This was the worst day of decline for the index since it went through 11 consecutive sessions of decline in 1974.
The S&P 500 also fell 2,951 points to close at 5,872.16, while the Nasdaq Composite slid 3,561 points to 19,392.69. The sell-off accelerated at the end of the session, pushing the indexes down further.
In the commodity market, gold prices also plunged. Spot gold fell 2.1% to $2,589.91 an ounce, the lowest level since November 18. US gold futures fell slightly 0.3% to close at $2,653.30 an ounce.
The US Federal Reserve (Fed) has just cut interest rates by another 0.25 percentage points, bringing the federal funds rate to a range of 4.5% – 4.75%. This is the second cut in 2024, following a 0.5 percentage point cut in September.
In the announcement, the Fed said it will continue to monitor economic indicators to adjust monetary policy appropriately, aiming to achieve the 2% inflation target and maintain a stable labor market.
Forecasting for 2025, the Fed is expected to cut interest rates by another 0.5 percentage points, less than the reduction in 2024. This reflects the Fed's expectation that inflation will gradually be controlled and the US economy will continue to grow steadily.
Economic and financial news Brent crude oil futures rose 0.27% to $73.39 a barrel. WTI crude oil futures rose 0.71% to $70.58 a barrel. The US Energy Information Administration (EIA) reported that crude oil and distillate inventories fell, while gasoline inventories rose in the week ending December 13. Stay tuned! HVA to update and grasp the fastest information about the financial market every day.
