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% 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%.
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%, to 5,872.16.
The Dow Jones Industrial Average fell 1,123.03 points, or 2.6%, to 42,326.87.
The Nasdaq composite fell 716.37 points, or 3.6%, to 19,392.69.
The Russell 2000 index of smaller companies fell 102.57 points, or 4.4%, to 2,231.51.
For the week:
The S&P 500 is down 178.93 points, or 3%.
The Dow is down 1,501.19 points, or 3.4%.
The Nasdaq is down 534.03 points, or 2.7%.
The Russell 2000 is down 115.38 points, or 4.9%.
For the year:
The S&P 500 is up 1,102.33 points, or 23.1%.
The Dow is up 4,637.33 points, or 12.3%.
The Nasdaq is up 4,381.34 points, or 29.2%.
The Russell 2000 is up 204.44 points, or 10.1%.