US Market: Over $1.50 Trillion Wiped Out in Single Day

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The US market is one of the largest and most dynamic economies in the world, offering vast opportunities for businesses across diverse industries. Known for its robust consumer base, technological innovation, and global influence, the U.S. market sets trends and standards that often shape the global economy.

Why has the US market dropped ?

Stocks fall sharply after Federal Reserve signals fewer rate cuts than expected for 2025. NEW YORK (AP) — US market tumbled to one of their worst days of the year after the Federal Reserve hinted Wednesday it may deliver fewer shots of adrenaline for the U.S. economy in 2025 than earlier thought.

GfHDEPtXEAE5ZfO?format=jpg&name=large US Market: Over $1.50 Trillion Wiped Out in Single Day

What is the time of Fed interest rate announcement ?

18 Dec 2024 at 02 pm ET. on the upcoming Federal Reserve rate decision. US Market have been hot this year, with the S&P 500, Dow and Nasdaq all up more than 15% since January. The US dollar and Treasury yields were largely unchanged.

What is the Federal Reserve Rate in market ?

The Federal Reserve rate, often referred to as the federal funds rate, is the interest rate at which banks lend money to each other overnight to meet reserve requirements. This rate is set by the Federal Reserve, the central bank of the United States, and serves as a critical tool for monetary policy.

What is the current Federal Reserve Rate in US market ?

The Fed lowered the federal funds rate — the interest rate banks charge each other for short-term loans — to a range of 4.25% to 4.5%, down from its previous target range of 4.5% to 4.75%.

The move, the Fed’s third rate cut of the year, reduces the central bank’s target rate to between 4.25% and 4.5%.

What is the US market Fed rate cut ?
US Federal Reserve cuts key interest rates by 0.25% The US Federal Reserve lowered interest rates by 0.25%. This is the third rate cut in a row. Inflation has been rising recently.
Why US market falling so badly ?
A stock market fall can occur as a result of a large disastrous event, an economic crisis, or the bursting of a long-term speculative bubble. Reactionary public fear in response to a stock market fall can also be a key cause, prompting panic selling that further depresses prices.
What is the Fed Rate now ?
Related Last Reference
Fed Balance Sheet 6897485.00 Dec 2024
Foreign Exchange Reserves 36337.00 Oct 2024
Inflation Rate YoY 2.70 Nov 2024
Fed Interest Rate 4.75 Nov 2024

 

What is the Dow Jones future ?
Dow Jones futures (or DJIA futures) are binding contracts pegged to the spot price of the Dow Jones Industrial Average (DJIA) Market Index. These contracts allow traders to profit by speculating on the future price movement of the Dow Jones Index.

What is the monetary policy phase ?

The rate cut, which was expected, was the “least important component” of today’s Fed meeting, noted Jack McIntyre, portfolio manager at Brandywine Global, in an email. Instead, Wall Street was focused on the Fed’s forecasts for 2025 and beyond, with the central bank’s new forecasts signaling the Fed has entered “a new phase of monetary policy, the pause phase,” McIntyre added.

Wednesday’s move marks the Fed’s final interest rate decision prior to President-elect Donald Trump’s Jan. 20 inauguration. While price increases have cooled from their June 2022 peak, opening the door to Fed rate cuts this year, inflation has remained sticky and well above the Fed’s 2% annual target.

Given that inflation has been sticky this year, many analysts have predicted that the Fed was likely to make fewer rate cuts in 2025 amid concerns that could cause the economy to overheat.

 

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