U.S. stocks sank to their second-worst loss of the year after the Federal Reserve signaled that it may deliver fewer interest rates cuts in 2025 than earlier thought.
The S&P 500 dropped 2.9 percent Wednesday to pull further from its all-time high set a couple weeks ago. The Dow Jones Industrial Average sank more than 1,100 points, and the Nasdaq composite dropped 3.6 percent.
Fed officials released projections showing they’re penciling in just two cuts to interest rates next year, instead of the four they were projecting a few months ago. Treasury yields ramped higher to add pressure on the stock market.
On Wednesday:
The S&P 500 fell 178.45 points, or 2.9 percent, to 5,872.16.
The Dow Jones Industrial Average fell 1,123.03 points, or 2.6 percent, to 42,326.87.
The Nasdaq composite fell 716.37 points, or 3.6 percent, to 19,392.69.
The Russell 2000 index of smaller companies fell 102.57 points, or 4.4 percent, to 2,231.51.
For the week:
The S&P 500 is down 178.93 points, or 3 percent.
The Dow is down 1,501.19 points, or 3.4 percent.
The Nasdaq is down 534.03 points, or 2.7 percent.
The Russell 2000 is down 115.38 points, or 4.9 percent.
For the year:
The S&P 500 is up 1,102.33 points, or 23.1 percent.
The Dow is up 4,637.33 points, or 12.3 percent.
The Nasdaq is up 4,381.34 points, or 29.2 percent.
The Russell 2000 is up 204.44 points, or 10.1 percent.
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