Posted on 12/18/2024 12:40:27 PM PST by CFW
The Dow Jones Industrial Average sank deeper into the history books on Wednesday, with the storied index on track for its 10th straight losing day following a disappointing rate outlook by the Federal Reserve.
The Dow lost 624 points, or 1.4%, on track for its worst losing streak since an 11-day slide in 1974. The 30-stock average posted a nine-day losing streak on Tuesday, its longest since 1978. The S&P 500 lost 1.5% and the Nasdaq Composite shed 1.9%.
The central bank reduced its overnight borrowing rate by 25 basis points to a target range of 4.25% to 4.5%, as expected. However, the Fed indicated it would only cut rates twice in 2025, according to its closely watched “dot plot,” fewer than the four cuts given in its last forecast. Fed Chair Jerome Powell said the central bank’s move to cut rates in recent months allows it to “be more cautious as we consider more adjustments to our policy rate.”
The odds of a rate cut at the Fed’s next meeting in January fell to just 11%, according to fed funds futures trading via the CME FedWatch tool. Before Wednesday, traders were hoping the Fed would stay aggressive with rate cuts in 2025, fueling the bull market further. Treasury yields jumped following the Fed’s cautious outlook, pressuring share prices.
(Excerpt) Read more at cnbc.com ...
Gold is down almost $60 and silver down over a dollar.
The feds dropped the interest rate .25% as expected, but something obviously was said or done that seriously spooked the markets. Maybe change in outlook for next year. Maybe it is the uproar over the CR in conjunction with Powell's remarks.
But, all the markets are continuing to fall.
The tech heavy NAS100 is now down almost 800 points and continuing to fall.
Down... from what/when?
People still wanting unneeded rate cuts. They’ll come to their senses eventually. The Fed rate is lower now than at any time in the last two years.
A little market correction is probably in order. Rates are not going to fall much in 2025, especially as the economy starts chugging.
The Fed has been cutting short rates (which is all they can control) even while the market has been pushing longer rates UP. The annual interest expense of the US government has gone from about 300 Billion a year just a few years ago to 1.3 TRILLION now. And debt that has to be rolled over (refinanced when bonds mature) has to be done at higher rates.
This is Congress’ problem, not the FED’s or anyone else’s. They MUST CUT spending, or its game over. This is how countries die.
The S&P was up about 27% for the year, now its only up about 24%.
My silver guy posted last night something in the silver/gold market looked odd. Precious metals are being affected by outside influences right now.
Bullion Dealer Tells URGENT Silver & Gold PRICING Info. This is a WARNING
https://youtu.be/F7arSnooQ3k?si=sEn53RClftb9dBCP
Precious metals are being affected by outside influences right now.
Correct tell when it loses 25 percent of it’s value.
“The Fed rate is lower now than at any time in the last two years.”
And hasn’t been at these levels since 2007. So much for the Trump effect.
The details of the jobs report revisions don’t look too good.
Crypto should drop for a few days, then offers great buying/adding opportunity into the new year.
The tards on Yahoo are hilarious.
Powell said that the Federal Reserve is keeping a close eye on the labor market.
“We do think the labor market is still cooling, by many measures,” he said, before caveating: “It’s not cooling in a quick [way], or in a way that really raises concerns.”
According to plan I see.
I just bought more Visa as the market was about to close. It’s down like everything else today, but Visa doesn’t care about interest rates, it makes money on transactions. Bought a few shares of BRK/B too, that’s a habit whenever it goes down.
LOL at the photos on the CNBC homepage of people crapping their pants over a 1100 point drop in the DOW. Whatever.
The NAS100 is now down almost 1000 pts in aftermarket trading. This is a great stop-loss raid on the retail trading market. The market-movers are loving it I’m sure.
Dec. 16-20 is the traditional time for tax-based selling. I did mine about a week ago with that in mind. Now I’ll be nibbling on other stocks and ETFs. Still rolling plenty of T-Bills too, another tranche matures tomorrow.
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