The Dow Jones Industrial Average narrowly snapped its longest losing streak since 1974 on Thursday.
The 30-stock Dow added 15.37 points, or 0.04% to close at 42,342.24. The S&P 500 slid 0.09% to 5,867.08, while the Nasdaq Composite fell 0.10% to 19,372.77.
Though the major averages initially rebounded to start the session – 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 shed their gains as the day went on, resulting in a very weak close. Seven of the 11 sectors of the S&P 500 ended the day lower.
The 10-year Treasury yield also rose for a second day, topping 4.5% and pressuring stocks. The benchmark yield surged more than 13 points in the previous session.
The major averages plunged Wednesday after the Federal Reserve struck a heavy blow against the roaring bull market, signaling that it was likely to cut interest rates only twice next year, down from the four reductions that had been penciled in during its 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.
“I think that this correction could last a bit,” Paul Meeks, Harvest Portfolio Management’s co-chief investment officer, told CNBC’s “Squawk Box” on Thursday. “You’ve seen the marquee name Nvidia come down, so what I would expect people to do [and] what I would recommend people to do is to maybe keep some powder dry.”
Volatility took a step down Thursday, with the Cboe Volatility Index pulling back nearly 13% to about 24. Wall Street’s so-called “fear gauge” soared Wednesday to as high as 28.27, reflecting heightened investor uncertainty over the path of interest rates.
Fed Chair Jerome Powell didn’t offer investors much in the way of immediate comfort Wednesday following the Fed meeting.
“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, 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.”
Leading up to Wednesday’s rate move, Wall Street was betting on the Fed to stay more aggressive in lowering borrowing costs, which affect everything from what companies pay to raise capital to how much it costs consumers to buy a new house or car.
But with the revamped Fed outlook, the Dow Jones Industrial Average slid 1,123.03 points, or 2.58%, to 42,326.87 — posting its longest losing streak since 1974. The S&P 500 tumbled 2.95%, and the Nasdaq Composite lost 3.56%.
Source: https://www.cnbc.com/2024/12/18/stock-market-today-live-updates.html