Traders work on the trading floor of the New York Stock Exchange in New York.
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THE Dow Jones Industrial Average On Thursday, he narrowly ended his longest losing streak since 1974.
The 30-stock Dow added 15.37 points, or 0.04%, to close at 42,342.24. THE S&P500 slipped 0.09% to 5,867.08, while the Nasdaq Composite fell 0.10% to 19,372.77.
Although the major averages initially rebounded in early trading – with the Dow up more than 460 points and the S&P 500 up more than 1% at their respective highs of the day – they gave up their gains as the day progressed. throughout the day, which led to a very strong increase. weak closure. Seven of the 11 S&P 500 sectors ended the day lower.
The 10-year Treasury yield also rose for a second day, topping 4.5%, putting pressure on stocks. The benchmark yield jumped more than 13 points in the previous session.
Major averages plunged Wednesday after the Federal Reserve dealt a blow to the roaring bull market, signaling it would likely cut interest rates only twice next year, compared to four reductions predicted in its last forecast , in September. . The central bank also cut its benchmark overnight borrowing rate by a quarter of a percentage point on Wednesday, to a target range of 4.25% to 4.5%, but the question is now to know what political decision-makers will do in 2025.
“I think this correction could last a little bit,” Paul Meeks, co-chief investment officer of Harvest Portfolio Management, told CNBC’s “Squawk Box” on Thursday. “You’ve seen the Nvidia brand name drop, so what I would expect people to do (and) what I would recommend people do is maybe keep a little powder dry.”
Volatility fell Thursday, with the Cboe Volatility Index falling nearly 13% to around 24. Wall Street’s “fear gauge” climbed Wednesday to 28.27, reflecting increased investor uncertainty over to changes in interest rates.
Fed Chairman Jerome Powell didn’t offer much immediate comfort to investors Wednesday after the Fed meeting.
“We’re at 4.3% – that’s a significantly restrictive rate, and I think it’s a well-calibrated rate so that we can continue to make progress on inflation while maintaining a strong labor market,” Powell said at a news conference, noting that cutting rates in recent months has allowed the central bank “to be more cautious as we consider further adjustments to our policy rate.”
Before Wednesday’s rate change, Wall Street was betting on the Fed to remain more aggressive in reducing borrowing costs, which affect everything from what companies pay to raise capital to how much it costs to consumers to buy a new house or a new car.
But with the Fed’s new outlook, the Dow Jones Industrial Average slipped 1,123.03 points, or 2.58 percent, to 42,326.87, posting its longest losing streak since 1974. The S&P 500 fell 2.95% and the Nasdaq Composite lost 3.56%.
