Market Tumult: Fed's Rate Cuts Trigger Stock Plunge

U.S. stocks nosedived after the Federal Reserve cut interest rates by 25 basis points. The move, coupled with a slower rate cut pace predicted for next year, led to significant market losses. Technology companies, however, continued to bolster the Nasdaq despite concerns about Trump's anticipated policies.

On Wednesday, U.S. stocks experienced a sharp decline, wiping out earlier gains, following the Federal Reserve's decision to reduce interest rates by a quarter of a percentage point. The central bank also indicated a more gradual pace of rate reductions for the coming years in its economic projections.

The Federal Reserve cut rates by 25 basis points, lowering them to a range of 4.25%-4.50%. Projections suggest a total reduction of half a percentage point by the end of 2025, driven by a robust labor market and inflation concerns. Chief market strategist Ellen Hazen noted the necessity of these changes due to the economy's current pace.

The S&P 500 dropped 181.39 points, Nasdaq fell 728.19 points, and Dow Jones experienced its longest losing streak since 1974. Despite these falls, technology stocks have helped buoy the Nasdaq, with hopes tied to a future decrease in interest rates and potential deregulation under the incoming Trump administration.

(With inputs from agencies.)