Dow aims to break worst losing streak in 50 years as stocks recover after Fed-fueled rout
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- Indexes rose Thursday following Wednesday's sell-off after the Fed meeting upended rate forecasts.
- The Fed cut rates by 25 basis points but signaled less easing next year than markets had expected.
- Bond yields were up, with the 10-year Treasury yield up seven basis points to 4.568%.
Indexes on Thursday rose after a steep sell-off in Wednesday's session following the Federal Reserve's last policy meeting of the year.
The Dow Jones Industrial Average was aiming to break a 10-day losing streak, its worst since 1974. The index was up over 300 points at the open after it shed 1,123 points in Wednesday's session.
The S&P 500 and the Nasdaq also rebounded, up 0.72% and 1% respectively.
The rebound follows the Fed meeting, which resulted in a 25 basis point rate cut, but also signaled less easing ahead in 2025.
The central bank indicated fewer rate cuts for next year than previously expected, signaling it will likely only cut rates twice in 2025, down from the four cuts it had projected in its last forecast in September.
Fed Chair Jerome Powell stressed the importance of continuing to bring down inflation, which has remained sticky in recent months.
He noted that Wednesday's rate will allow the Fed to be more cautious in 2025. The central bank's easing cycle kicked off in September.
"With today's action, we have lowered our policy rate by a full percentage point from its peak, and our policy stance is now significantly less restrictive. We can therefore be more cautious as we consider further adjustments to our policy rate," Powell said in prepared remarks Wednesday afternoon.
After the Fed's cut and adjusted outlook, the Cboe Volatility Index jumped amid increased uncertainty, and the 10-year Treasury yield rose.
Here's where US indexes stood shortly after the 9:30 a.m. opening bell on Thursday:
- S&P 500: 5,914.67, up 0.72%
- Dow Jones Industrial Average: 42,653.79, up 0.87% (+367.39 points)
- Nasdaq composite: 19,603.51, up 1.09%
Here's what else is happening:
- Bitcoin could soar to $500,000 if the US starts buying the token, crypto fund CIO says
- A tiny fintech stock is up 4,700% in 2 days after taking a stake in a company involved with Israel's Iron Dome missile system
- An under-the-radar value stock with 21% upside is one of Bank of America's top internet picks
In commodities, bonds, and crypto:
- West Texas Intermediate crude oil rose 0.7% to $71.10 a barrel. Brent crude, the international benchmark, was up 0.4% to $73.72 a barrel.
- Gold fell 1.5% $2,611.80 an ounce.
- The 10-year Treasury yield was up seven basis points to 4.568%.
- Bitcoin was down 3% to trade at $101,388