Wall Street Suffers as Dow Jones Slides Significantly

On Wednesday, Wall Street experienced a notable downturn following the Federal Reserve's announcement of a 25-basis-point interest rate cut, bringing rates to a range of 4.25%-4.50%. This marks the third consecutive rate cut by the Fed. However, investor sentiment turned sour as Fed Chair Jerome Powell signaled a cautious outlook, emphasizing that future rate adjustments would depend on inflation progress and economic data.

Powell described the rate cut decision as a 'close call,' reflecting a divided committee. He also noted that the Fed is closely monitoring inflationary pressures, including the potential impact of President-elect Donald Trump's proposed tariff measures, but reiterated that no policy changes would be made preemptively.

By 2:48 pm ET, the Dow Jones Industrial Average plummeted 0.93% or 402 points, the Nasdaq 100 plunged 1.49%, and the S&P 500 declined 1.10%. The euro lost 1.06% against the dollar to sell at $1.03772.