The main US indices have closed with sharp declines after the Federal Reserve has chosen to lower interest rates again by 25 basis points. The markets have been frozen after seeing that the monetary authority’s dot graph forecasts two more declines for 2025, which is half of what was estimated in September, the month in which the jumbo cut was applied. In this context, the Dow Jones has lost more than a thousand points, signing its worst streak since 1974. Overall, it is the worst reaction to a Fed decision since March of last year.
The industrial selective has fallen by 2.58% to 42,326 units, marking the largest drop in points since March 2020, in the midst of the Covid pandemic. The indicator has been weighed down by banking, with American Express (-4.62%) and Goldman Sachs (-4.29%) leading the declines. For its part, the S&P 500 has lost 2.95% to 5,872 integers, penalized by Tesla (-8.28%), Warner Bros Discovery (-6.34%) and Broadcom (-6.91%), thus signing its biggest drop since Black Monday last August .
For its part, the Nasdaq 100 has collapsed 3.60% up to 21,209 points, registering losses in 99 values of its hundred. The technological indicator has been weighed down by sharp falls in the Magnificent Seven. In addition to the already mentioned Tesla, Amazon (-4.60%), Microsoft (-3.76%), Alphabet (-3.54%), Meta (-3.59%), Apple (-2.14% ) and Nvidia, which rose 4%, ended up losing 1.14%.
At the same time, the ten-year bond yield has risen ten basis points to 4.51%, accumulating a rise of 24 basis points so far this week. So, he T-Note erase one of the rate cuts that the market was still waiting for. Furthermore, the price of gold has sunk 2.08% to $2,606, while the price of a barrel of Texas has barely noticed the ‘Fed’ effect, closing flat above $70. For its part, the dollar has gained one cent against the euro, up to $1,037 per European currency. Additionally, bitcoin has lost 5.5% to $101,100.
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