| Name | Daily Close | Daily Change | Daily Change (%) |
|---|---|---|---|
| Dow | 43449.90 | -267.58 | -0.61% |
| S&P 500 | 6050.61 | -23.47 | -0.39% |
| Nasdaq | 20109.06 | -64.83 | -0.32% |
| VIX | 15.87 | 1.18 | 8.03% |
| Gold | 2663.50 | -6.50 | -0.24% |
| Oil | 70.26 | -0.45 | -0.64% |
US MARKET
U.S. stocks plunged Wednesday as the Federal Reserve delivered a 25-basis-point rate cut but signaled a slower pace of reductions for 2025 than previously projected. The Dow Jones Industrial Average fell 2.6%—over 1,000 points—marking its 10th consecutive losing session, the longest streak since 1974. The S&P 500 lost 3%, while the Nasdaq Composite tumbled 3.5%.
Fed projections now anticipate just two rate cuts next year, down from four predicted in September, alongside higher forecasts for inflation and economic growth. Chair Jerome Powell cited persistent inflation and a strong economy as reasons for caution. Cleveland Fed President Beth Hammack dissented, favoring no rate cut, a move analysts described as a “hawkish cut” reflecting the risk of higher rates for longer.
The 10-year Treasury yield jumped nearly 11 basis points to just under 4.5% after Powell’s press conference. Rate-sensitive sectors were hit hard, with the Russell 2000 index dropping 4% and real estate stocks among the worst performers in the S&P 500, also down 4%.
The Dow’s extended losing streak dampened market sentiment, in contrast to the strong tech-led rally that has driven much of 2024’s gains. The blue-chip index has lagged amid a broader focus on technology-driven growth.
LOCAL MARKET
The Australian sharemarket is set to open lower, with ASX futures down 1.23% by 7:33am AEDT and the Australian dollar falling over 1% to US62.37¢ after the US Federal Reserve signaled a slower pace of rate cuts in 2025.
Australian stocks to watch today include ANZ, Elders, and Incitec Pivot, all hosting AGMs.
New Zealand’s economy officially entered recession as GDP shrank 1% in Q3, following a revised 1.1% drop in Q2. The Kiwi dollar fell to 56.3 US cents, though recovery is expected in 2025 with interest rate cuts and improving consumer confidence.