Markets reacted negatively to the Fed's rate cut yesterday, with the Dow dropping 1,100 points, the S&P falling 3%, the Nasdaq losing 3.5%, and the Russell 2000 small-caps declining 4.4%. The 10-year yield surged, pushing mortgage rates above 7%. The market was expecting three more rate cuts next year, but the Fed's projections suggest only two. Economic growth and inflation have been stronger than anticipated since September's rate cut, leading to a rise in the 10-year Treasury yield from 3.
6% to 4.56%. While the yield curve has un-inverted, which is positive for banks and the economy, rising inflation expectations are a concern. The 10-year TIPS yield has spiked, indicating potential for stickier inflation. High interest rates also pose a fiscal problem, as they contribute significantly to the national debt.
Hemos resumido esta noticia para que puedas leerla rápidamente. Si estás interesado en la noticia, puedes leer el texto completo aquí. Leer más:
España Últimas Noticias, España Titulares
Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.
Market Selloff After Fed Rate CutThe stock market reacted negatively to the Fed's rate cut yesterday, with major indices experiencing significant drops. The selloff was triggered by the Fed's updated projections of only two more rate cuts next year, lower than market expectations of three. While the 10-year Treasury yield has un-inverted, indicating a potential boost to lending and the economy, rising inflation expectations and high interest rates pose challenges for the market and the budget.
Fuente: nbcsandiego - 🏆 524. / 51 Leer más »
Troubling signs under the hood: Charts point to possible market selloff around cornerDavid Keller breaks down the weak internal breadth he's seeing in the S&P 500.
Fuente: CNBC - 🏆 12. / 72 Leer más »
Florida's Housing Market Could See 'Big Investor Selloff' in 2025An increase in supply has meant falling demand for homes, which means rent prices are tumbling in a bid to attract tenants, says expert.
Fuente: Newsweek - 🏆 468. / 52 Leer más »
Toncoin (TON) Surges 80% in Whale Activity Amid $405 Million Market Sell-offCrypto market sees sell-off ahead of Fed's rate decision
Fuente: Utoday_en - 🏆 295. / 63 Leer más »
Stock market today: Dow in longest losing streak since 1978; Fed decision loomsStock market today: Dow in longest losing streak since 1978; Fed decision looms
Fuente: Investingcom - 🏆 450. / 53 Leer más »