Posted on 12/19/2024 3:38:37 AM PST by EBH
Stocks plunged Wednesday after the Federal Reserve struck a heavy blow to the roaring bull market, signaling that it was likely to only cut interest rates twice next year, down from the four reductions that had been penciled in during their last forecast in September. The central bank also trimmed its benchmark overnight borrowing rate a quarter percentage point Wednesday, to a target range of 4.25% to 4.5%, but the question now is what policymakers will do in 2025.
“Stretched positioning and sentiment left stocks vulnerable to a selloff,” LPL Financial chief equity strategist Jeff Buchbinder said in reaction to Wednesday’s slump. “The big jump in inflation expectations and related bond selloff was a convenient excuse. Once support from tech evaporated, no other groups were able to step in to fill that gaping hole.”
Chair Jerome Powell didn’t offer investors much in the way of immediate comfort. “We’re at 4.3% — that’s meaningfully restrictive and I think it’s a well-calibrated rate for us to continue to make progress on inflation while keeping a strong labor market,” Powell said at a press conference following the Fed meeting, noting that cutting rates in recent months has allowed the central bank to “be more cautious as we consider more adjustments to our policy rate.”
(Excerpt) Read more at cnbc.com ...
And it was an illusion holding up the market most of the year. Once that bubble is deflated, the true market value will be realized.
Today is a deadcat bounce day. Let's see what the digits do. Should be an up day, but the decline will continue into the New Year.
And I am so watching comments on some of the news sites, they're already blaming Trump. Few understand they have been lied to for several years with massively manipulated numbers.
This results in a hard downturn in the first half of the year. Pray for the new administration because we're going to have an uphill battle for the midterms on messaging.
happiness is:1.DOGE days of December are here, assaulting government bloat and inflationary spending.hip hip!2. Fed realizes rate cuts have sent interest rates higher because excessive spending continues- so it has to pull back. end of year trends are deceptive in markets as people tidy up for tax reasons, but yesterday’s events bode well for long-term.
My expectations are always realistic. The market still wants to go up and people will buy on the dips. Historic highs among the indices portend more of the same. There are things being worked out to help pave the way for growth. Time is on my side, so investing in the market (index funds) is a better strategy for me than trading. MAGA!
Powell trying to screw over Trump. Slow down the economy and try to trigger a recession and blame Trump.
The futures are now up 159⬆️
Not likely. What set the market back is setting the stage for fewer rate cuts in 2025.
“ The tech illusion evaporated...”
Interest rate expectations were the market mover yesterday
The P/E ratios were too high and still are. We need to bleed off more before it gets better.
They’re higher than that.
People simply don't comprehend the amount of money rained down by Trump and Biden. That money is sucked up by markets and put in stocks/etfs etc. Future leaps and other investments haven't hit yet for next year, we still have room to 6200 or higher with a post Christmas Santa rally, if it happens.
Markets aren't based on reality nor on the economy. Weakness really occurs in a post Jan opex, which, also aligns with a Trump presidency.
USD▲ +505.97 (+1.22%) today
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