Media Stocks, Markets Plunge On Interest Rate Jitters, Dow Drops 1,100 Points

deadline.com:

Stocks were decimated Wednesday with the three major indexes ending broadly lower after the U.S. Federal Reserve indicated it won’t cut rates as aggressively next year as markets had expected.

The Fed cut rates today by 25 basis points at its regular meeting, following a 25 basis-point cut in November and a 50-point cut in September — a trajectory that had many hoping the highest cost of money in more than two decades was decisively on the way down.

Now, Fed officials anticipate two cuts in 2025 instead of the four that were expected in September. The interest rate futures market — where traders bet on future rates — is looking for even less relief from one cut to none.

The main reason is that core inflation still needs some attention. Rates rose dramatically over two years to tamp down rampant inflation.