U.S. markets shed over 2% on Wednesday (Thursday AEDT), as Fed Chair Jerome Powell remained cautious on the prospect of future rate cuts.
The Dow fell 1,123 points or 2.6% to 42,623.9, the S&P 500 lost 178.4 points or 3% to 5,872.2 and the Nasdaq Composite shed 716.4 points or 3.6% to 19,392.7.
The Federal Reserve’s decision to cut its benchmark rate by 25 basis points to a range of 4.25%-4.5% was widely anticipated. However, the central bank signalled just two rate cuts in 2025, down from four in its prior forecast.
Technology stocks led the market decline, with Broadcom dropping 6.9% and Tesla falling 8.3%. Shares of Microsoft, Meta, and Alphabet lost about 3.6% apiece, while Amazon and Apple dropped 4.6% and 2%, respectively.
On the bond markets, 10-year and 2-year rates surged over 2.5% each to 4.514% and 4.357%, respectively.