News Formal

Fed Rate Cut Sparks Market Sell-Off

  • 📰 NBCPhiladelphia
  • ⏱ Reading Time:
  • 14 sec. here
  • 7 min. at publisher
  • 📊 Quality Score:
  • News: 26%
  • Publisher: 51%

Business News

Federal Reserve,Interest Rate Cut,Monetary Policy

Despite a 25 basis point rate cut by the Federal Reserve, markets tumbled as investors anticipated tighter monetary policy in 2025. Micron Technology's stock also declined despite strong earnings.

The Federal Reserve cut its key interest rate by 25 basis points on Wednesday, taking its overnight borrowing rate to a target range of 4.25%-4.5%. While the Fed's dot plot indicated expectations for rates in the years ahead, investors were already anticipating the rate cut and had priced in the benefits into stocks. This led to a sell-off in markets as investors digested the Fed's forecast that monetary policy in 2025 will remain tighter than previously forecast.

Micron Technology's stock also fell sharply despite beating earnings expectations for its last quarter. Analysts noted that the company's stock seems 'widely disconnected … from fundamentals,' even though shares are still up 75% since the 2020 election

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 569. in NG
 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

Nigeria Nigeria Latest News, Nigeria Nigeria Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Fed Rate Hike Sparks Market Sell-OffThe Federal Reserve raised interest rates, leading to a significant market sell-off. The hike, while expected, fueled concerns about the future direction of the economy and the potential impact on stock prices.
Source: CNBC - 🏆 12. / 72 Read more »