US stocks sink after Fed signals slower pace of cuts
Main U.S. indexes sharply lower; Nasdaq off most, down 3.6%
All S&P sectors decline; Cons Disc weakest group
Dollar rallies >1%; crude ~flat; gold down >2%; bitcoin off ~5%
U.S. 10-Year Treasury yield rises to ~4.50%
Welcome to the home for real-time coverage of markets brought to you by Reuters reporters. You can share your thoughts with us at markets.research@thomsonreuters.com
U.S. STOCKS SINK AFTER FED SIGNALS SLOWER PACE OF CUTS
The three major U.S. stock indexes closed sharply lower on Wednesday, with the Dow .DJI and S&P 500 .SPX registering their biggest daily percentage declines since early August and the Nasdaq .IXIC posting its biggest drop since late July after the Federal Reserve cut interest rates as expected, but signaled it will ease the pace of further cuts in the coming year.
The Dow ended lower for a 10th straight session, its longest losing streak since 1974.
The Fed cut rates by 25 basis points on Wednesday, and U.S. central bankers issued fresh projections calling for two quarter-point interest-rate cuts next year amid rising inflation, a forecast consistent with a wait-and-see approach.
Regional banks .KRX, chips .SOX, and small caps .RUT were among areas hit the hardest in the wake of the Fed announcement and Fed Chair Jerome Powell's comments.
The SOX ended down 3.9%, while the RUT finished off 4.4%.
All of the major S&P 500 sectors closed lower, with consumer discretionary .SPLRCD - down 4.7% - and real estate .SPLRCR - down 4% - falling the most.
Here is the closing market snapshot:
(Caroline Valetkevitch)
*****
FOR WEDNESDAY'S EARLIER LIVE MARKETS POSTS:
S&P 500 SLIDES AFTER FED CUTS RATES, SIGNALS PACE TO SLOW - CLICK HERE
WAIT, HAVE WE ALREADY WATCHED THIS MOVIE? - CLICK HERE
S&P 500 NOT IN 'BUBBLE TERRITORY' - WFII - CLICK HERE
FED DAY DATA ROUNDUP: HOUSING STARTS, MORTGAGE DEMAND, CURRENT ACCOUNT - CLICK HERE
U.S. INDEXES EDGE UP BEFORE FED - CLICK HERE
BENCHMARK TREASURY YIELD TILTING HIGHER AHEAD OF FED - CLICK HERE
WHAT IS STRATEGIC ABOUT A BITCOIN RESERVE? - CLICK HERE
UK INFLATION: HOW MUCH DID OPTICIANS SPEND ON THURSDAYS? - CLICK HERE
RELEASING GERMANY'S FISCAL STRAIGHTJACKET - CLICK HERE
DEALS THE DRIVING FORCE - CLICK HERE
EUROPE BEFORE THE BELL: DON'T THEY KNOW ITS CHRISTMASTIME? - CLICK HERE
MORNING BID: FED LOOMS AND EUROPE GETS INFLATION DATA - CLICK HERE
closing snapshot https://tmsnrt.rs/3VMjyuv
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
