Market Reaction to Federal Reserve's Rate Cut

The United States stock market experienced a significant downturn on Wednesday, closing with the Dow Jones Industrial Average losing over 1,100 points. This sharp decline followed the Federal Reserve's decision to cut interest rates by 25 basis points, marking the third consecutive rate cut this year. Central bank chair Jerome Powell's subsequent statement, which did not rule out a rate hike in 2025, further fueled the market's negative reaction.

Powell described the decision to lower rates as a "close call" and suggested a more cautious approach to potential new cuts in the upcoming year. This cautious stance was reflected in the market's performance, with the Nasdaq 100 tumbling 3.60% and the S&P 500 plummeting 2.95%.

The Dow Jones fell sharply, losing 2.58% and extending its negative trend. Investors are now closely watching the market's reaction to these developments, with more updates expected in the coming days.