The stock market has experienced a significant downturn as investors adjust their expectations regarding future Federal Reserve interest rate cuts. In the latest trading session, the Nasdaq Composite fell about 2%, while the S&P 500 dropped 1.5%. This decline follows the release of disappointing data that has led to concerns that the Federal Reserve will not lower interest rates until 2025, contradicting previous investor hopes. Major U.S. indices, including the Dow Jones, witnessed similar declines, with all sectors suffering losses, particularly in technology stocks. Nvidia, a key player in the semiconductor industry, saw its stock tumble 3%. Edward Moya, a senior market analyst at OANDA, stated, “The market thought there would be a clearer picture of when the Federal Reserve would pivot, and that’s not coming.” This sentiment echoes through the trading floors as yields on 10-year U.S. Treasuries climbed amid these bleak outlooks. Furthermore, futures indicated a continuation of this trend, with Wall Street closing in the red as caution prevailed. The economic landscape remains cloudy, pushing investors to seek safer investments as uncertainty looms over the Federal Reserve’s monetary policy strategies.
Stock Market Plummets Amidst Disappointment Over Fed Rate Cuts
