Stock Market Plummets After Fed Rate Cut, Experts Warn of Volatility

The Dow Jones Industrial Average dropped about 1,100 points, or 2.5%, marking its 10th consecutive day of losses. The S&P 500 plummeted nearly 3%, which amounted to the largest dip the index has taken following a Fed meeting since 2001, according to data shared with ABC News by Deutsche Bank Research.

The market's sudden wobble poses a key question: Is this a blip on the path to further gains, or a sign of even worse losses to come?Experts who spoke to ABC News described the selloff as an omen of tumultuous days ahead, pointing to a potentially prolonged spell of volatility. Despite this uncertainty, experts told ABC News that the economy continues to rest on sound footing, retaining the positive outlook for mid- and long-term gains. 'We're used to the market going straight up for so many months, and there's going to be more volatility from here,' Ed Yardeni, the president of market advisory firm Yardeni Research and former chief investment strategist at Deutsche Bank's U.S. equities division, told ABC News.The stock market indeed appeared to rebound in early trading on Thursday, recovering some of the previous day's losses. The Dow climbed about 250 points, or 0.6%, while the S&P 500 jumped 0.7%. The Nasdaq gained nearly 1%. The Fed announcement Wednesday afternoon that triggered the alarm on Wall Street included news that the central bank cut interest rates a quarter of a percentage point, but also a fresh projection anticipating fewer interest rate cuts than expected just a few months ago: only a half a percentage point of rate cuts next year and another half-percent cut in 2026. Lower interest rates typically stimulate economic activity over the long term, keeping the economy growing and safeguarding the labor market. They also tend to drive up corporate profits and stock prices. In theory, a longer-than-expected period of high interest rates could diminish those returns.

المملكة العربية السعودية أحدث الأخبار, المملكة العربية السعودية عناوين

Similar News:يمكنك أيضًا قراءة قصص إخبارية مشابهة لهذه التي قمنا بجمعها من مصادر إخبارية أخرى.

Stock market today: S&P 500, Dow sidestep Trump's tariff threat to close at recordStock market today: S&P 500, Dow sidestep Trump's tariff threat to close at record
مصدر: Investingcom - 🏆 450. / 53 اقرأ أكثر »

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
مصدر: Investingcom - 🏆 450. / 53 اقرأ أكثر »

Stock market today: Dow cuts losses to close higher, shrugging off Target slumpStock market today: Dow cuts losses to close higher, shrugging off Target slump
مصدر: Investingcom - 🏆 450. / 53 اقرأ أكثر »

Stock market today: Dow rides rotation into cyclicals to close at record highStock market today: Dow rides rotation into cyclicals to close at record high
مصدر: Investingcom - 🏆 450. / 53 اقرأ أكثر »

Meme Coin Market Cap Surpasses U.S. Quantum Stock MarketCryptocurrency analyst Charles Edwards highlights the disparity between the market capitalization of meme coins like Dogecoin and the entire U.S. quantum stock market. Edwards questions the sustainability of this trend, suggesting it may not last long.
مصدر: Utoday_en - 🏆 295. / 63 اقرأ أكثر »

Market Volatility: Is the US Stock Market in a Bubble?The article discusses the current state of the US stock market, highlighting the record highs of the Nasdaq, the Dow's recent losing streak, and the flat performance of the S&P 500. It analyzes the market's exuberance, potential for a pullback, and the attractiveness of traditional S&P 500 investments.
مصدر: NBCNewYork - 🏆 270. / 63 اقرأ أكثر »