Posted on 12/18/2024 3:11:09 PM PST by lasereye
U.S. stocks finished lower on Wednesday, with the Dow Jones Industrial Average posting its worst day in over four months after the Federal Reserve decided to lower its benchmark interest rate by 25 basis points but reduced its forecast for further rate cuts in 2025.
The Dow fell 1,123.03 points, or 2.6%, to end at 42,326.87. The blue-chip index fell for a 10th straight session, logging its longest losing streak since October 1974, according to Dow Jones Market Data.
The S&P 500 was off 178.45 points, or nearly 3%, to finish at 5,872.16. The large-cap index suffered its largest one-day point decline since 2020 and its largest one-day percentage fall since Aug. 5, according to Dow Jones Market Data.
The Nasdaq Composite tumbled 716.37 points, or nearly 3.6%, ending at 19,392.69. It was the largest one-day percentage drop for the tech-heavy index since July 24, according to Dow Jones Market Data.
| Index | Close | Change |
|---|---|---|
| S&P 500 | 5872.16 | -178.45-2.95% |
| DJIA (Dow Jones Global) | 42326.87 | -1123.03-2.58% |
| COMP (Nasdaq) | 19392.69 | -716.37-3.56% |
(Excerpt) Read more at marketwatch.com ...
That said, this will probably prove to be a big overreaction in my expert opinion.
This is good. In my opinion the market had been keeping up with inflation and now it knows inflation will be coming down soon. And if not my opinion is as good as any overpaid analyst;-)
New fed head after January 20th.
They are screwing things up intentionally.
It’s been going up, especially our Tesla stock and I’ve been selling a bit daily and today I bought. It’s going to go back up but probably more slowly.
You do realize that what you are doing is not "investing". It's gambling.
It’s trading. Those with very good skills make money; everyone else loses money.
So you’re a professional gambler. Nothing wrong with that. A friend of mine gave up programming to earn a very good living playing poker. If you’re into it you’d recognize his name.
Fast forward to 2024. Trump won this Nov and the Fed is lowering one more time and saying don't expect them to keep lowering during Trump 2.0.
Even after a 3% drop today the s&p500 is still up 23% for the year. Given these levels corrections can come any day and perhaps more to come . Markets cant rise forever.
End of year tax loss harvesting, post election rally. Good buying positions for the new year.
7T is sitting on the bench. I consider it very educated “gambling”. I have been in cash for the last 20 days BTW.
Yea, it is a bit of gambling but the house has always paid it back, in spades.
Powell’s term ends in May 2026
Likewise. when there’s blood in the street, it’s time to buy
Today, the market gave back 6 weeks’ post-election gains and we’re back where we were on Election Day. But the run up over the previous few months as the market priced in a Trump win was such that my gut feeling that there’s more room to fall. We may see a dead-cat bounce tomorrow but I could see the market continue to sell off for a while. YMMV. Good luck, gentlemen.
The Fed painted itself into a corner with it’s policies and money printing. They need to raise interest rates to address inflation from having excess money in circulation. The higher they make the interest rates the more the interest on the national debt will cost until it become prohibitively expensive. They’ve reached a point where to raise it will bankrupt the country and to keep it same or to lower it will cause inflation to surge.
Jealous much?
No. If you can make it work, then more power to you. I’ve got my own methods.
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