Global markets experienced a downturn on Thursday following a sharp decline in U.S. stocks after the Federal Reserve hinted at potentially fewer rate cuts in 2025 than previously anticipated. The Fed reduced its key rate by a quarter of a percentage point to a range of 4.25% to 4.5%, in line with expectations. Meanwhile, the Bank of England was expected to maintain its policy rate, and the Bank of Japan kept its benchmark rate at 0.25%, leading to a strengthening of the dollar against the Japanese yen.
World markets saw declines of less than 2%, with European markets also being affected. In early trading, the FTSE 100 in Britain dropped 1.2%, the CAC 40 in Paris fell 1.2%, and Germany's DAX was 1% lower. Futures for the S&P 500 and the Dow Jones Industrial Average showed slight gains, while in Asia, Tokyo's Nikkei 225 lost 0.7%.
