Dow Sheds 1,100 Points, Nasdaq Plunges 3.5% in Mayhem Session After Fed Message — TradingView News

Investors scrambled for cover Wednesday after Fed boss Jay Powell said the central bank is changing the tune come 2025.

• The Dow Jones Industrial Average DJI erased more than 1,100 points on Wednesday following the Federal Reserve’s interest rate decision coupled with the central bank’s forward-looking guidance. It was the latter that scared off investors from risk assets. The Fed lowered interest rates by an expected 25-basis-point cut but said the party is just about over — no more than two cuts are projected for next year.
• It was the Dow’s tenth straight losing session — a string of losses not seen since 1974 when the 30-stock index logged eleven consecutive days of losses. It was also the second time this year where the Dow wiped out more than 1,000 points from its valuation. Its two peers were also not happy to hear the Fed’s message — the S&P 500 declined roughly 3% and the tech-heavy Nasdaq Composite sank almost 3.6%.
• Traders and investors were hoping to see more of the same heading into the new year — a message where the Fed moves aggressively on interest rates in efforts to support growth and fuel the bull market to even higher highs. There was one standout winner of the Fed’s cautious optimism — the US dollar rallied hard across the board, almost knocking the euro to a two-year low under $1.04.