The Dow Jones Industrial Average plummeted by 1,123 points, or 2.6%, on Wednesday after the Federal Reserve signaled ongoing concern over inflation in the near term. The stock market experienced a distribution day, characterized by unusually heavy professional selling.
Federal Reserve Chairman Jerome Powell stated that the economy is in a “really good place” and policy is also “in a really good place.” However, the Fed reduced its expectations for future rate cuts in 2025, citing stronger expected growth married with higher anticipated inflation.
In a mixed market, Jabil (JBL) broke out with gains of up to 11% following better-than-expected November-quarter results. Broadcom (AVGO) also held steady, while Heico (HEI) fell despite posting good results. Birkenstock (BIRK) surged on solid quarterly revenue.
The gold price pulled back slightly, down less than 0.5% to $2,651 an ounce, while crude oil futures rose more than 1% to $73 per barrel. The stock market is trying to rebound after a distribution day in the prior session.
Source: https://www.investors.com/market-trend/stock-market-today/djia-nasdaq-sp500-tesla-stock-fed-meeting