Investing.com — The Dow slumped more than 1100 points Wednesday, after Federal Reserve delivered a quarter-point rate cut, but halved the number of cuts expected for next year, sending Treasury yields higher and triggering a sea of red across stocks.
At 4:00 p.m. ET (21:00 GMT), the fell 2.6%, or 1123 points, the fell 3% and the slipped 3.6%.
Fed halves rate-cut outlook for 2025
The Fed cut interest rates by 25 basis points on Wednesday, but halved the number of rate cuts expected for next year on concerns about a longer-than-expected journey to bring inflation down toward the 2% target.
Fed members now see the benchmark rate falling to 3.9% for next year, suggesting just two rate cuts, compared with a prior forecast in September for four cuts.
Treasury yields jumped following the news, with the 2-year Treasury trading surging 11 basis points to 4.346%.
Nvidia rebound fades after sharp reversal; Jabil jumps; General Mills stumbles
NVIDIA Corporation (NASDAQ:) cut its intraday gains to en 1% lower following the broader market slump. The chipmaker fell deeper into correction territory on Tursday following its 10% plunge from a recent peak.
Tesla Inc (NASDAQ:), meanwhile, halted its impressive run with a 8% slump.
Jabil Circuit Inc (NYSE:) was in rally mode, surging 7% after reporting stronger-than-expected fiscal first quarter results and guidance.
Elsewhere on the earnings front, Birkenstock Holding ltd (NYSE:) reported Q4 results that topped Wall Street estimates, sending its shares more than 2% higher.
General Mills Inc (NYSE:) stumbled after cutting its annual outlook on earnings as ramp up in promotional activity dented margins.
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