The Dow Jones Industrial Average broke a half-century record for futility on Wednesday, suffering losses for the 10th consecutive session on the heels of the Federal Reserve's 0.25% interest rate cut.
The Dow Jones dropped 1,123.03 points ( down 2.58%), a decline that was hastened by the Fed's decision to take a more cautious approach to interest rate cuts amid recent unfavorable inflation data and positive employment reports.
The S&P 500 fell 178.57 points (down 2.95%) and the Nasdaq Composite dropped 716.37 points (down 3.56%), also sustaining big losses in response to the Fed's announcement.
Powell told investors to expect only two rounds of rate cuts in 2025 compared to the four previously mentioned -- a more conservative strategy than investors hoped to see.
"I would say today was a closer call, but we decided it was the right call because we thought it was the best decision to foster achievement of both of our goals," Fed chair Jerome Powell said of the cut, vowing to "be more cautious as we consider more adjustments to our policy rate."
While the rate cut was the driving force behind Wednesday's market decreases, the Dow Jones has been fading through the month of December. Analysts point to a shift toward tech stocks for the Dow's recent decline.
Tech stocks were among those suffering the biggest losses on Wednesday, including Meta and Alphabet. Tech stocks were also reacting negatively to the latest news on the US ban on TikTok, which is being taken up by the Supreme Court.
Stocks weren't the only investments taking losses Wednesday as cryptocurrency also saw retreats. Bitcoin, which had been surging ahead of the Fed announcement, quickly slipped to $104,000 on the news.
