Stock market news for Dec. 19, 2024

The Dow Jones Industrial Common narrowly snapped its longest shedding streak since 1974 on Thursday.

The 30-stock Dow added 15.37 factors, or 0.04% to shut at 42,342.24. The S&P 500 slid 0.09% to five,867.08, whereas the Nasdaq Composite fell 0.10% to 19,372.77.

Although the most important averages initially rebounded to begin the session – with the Dow up greater than 460 factors and the S&P 500 up greater than 1% at their respective highs of the day – they shed their features because the day went on, leading to a really weak shut. Seven of the 11 sectors of the S&P 500 ended the day decrease.

The ten-year Treasury yield additionally rose for a second day, topping 4.5% and pressuring shares. The benchmark yield surged greater than 13 factors within the earlier session.

The main averages plunged Wednesday after the Federal Reserve struck a heavy blow in opposition to the roaring bull market, signaling that it was more likely to lower rates of interest solely twice subsequent 12 months, down from the 4 reductions that had been penciled in throughout its final forecast, in September. The central financial institution additionally trimmed its benchmark in a single day borrowing fee 1 / 4 share level Wednesday, to a goal vary of 4.25% to 4.5%, however the query now’s what policymakers will do in 2025.

“I believe that this correction may final a bit,” Paul Meeks, Harvest Portfolio Administration’s co-chief funding officer, advised CNBC’s “Squawk Field” on Thursday. “You’ve got seen the marquee title Nvidia come down, so what I’d count on folks to do [and] what I’d suggest folks to do is to perhaps hold some powder dry.”

Volatility took a step down Thursday, with the Cboe Volatility Index pulling again almost 13% to about 24. Wall Road’s so-called “worry gauge” soared Wednesday to as excessive as 28.27, reflecting heightened investor uncertainty over the trail of rates of interest.

Fed Chair Jerome Powell did not supply buyers a lot in the best way of fast consolation Wednesday following the Fed assembly.

“We’re at 4.3% — that is meaningfully restrictive, and I believe it is a well-calibrated fee for us to proceed to make progress on inflation whereas retaining a robust labor market,” Powell mentioned at a press convention, noting that slicing charges in current months has allowed the central financial institution to “be extra cautious as we contemplate extra changes to our coverage fee.”

Main as much as Wednesday’s fee transfer, Wall Road was betting on the Fed to remain extra aggressive in reducing borrowing prices, which have an effect on every part from what corporations pay to boost capital to how a lot it prices shoppers to purchase a brand new home or automotive.

However with the revamped Fed outlook, the Dow Jones Industrial Common slid 1,123.03 factors, or 2.58%, to 42,326.87 — posting its longest shedding streak since 1974. The S&P 500 tumbled 2.95%, and the Nasdaq Composite misplaced 3.56%.