US stocks plunged on Wednesday as investors weighed the odds of recession and reined in their enthusiasm for expected rate cuts.
The Dow Jones Industrial Average snapped its nine-day winning streak, which saw a series of fresh record highs.
Investors have been riding a strong rally on expectations of Fed rate cuts next year. But Wall Street strategists have warned rate cuts could be a double-edged sword. While lower rates are bullish for stocks, they can also signal a slowing economy that may tip into recession.
GDP is expected to rise 2.7% this quarter, according to the Atlanta Fed’s GDPNow model, down from the third quarter’s 5.2% surge. Shares of FedEx, a bellwether for worldwide economic trade, tumbled after reporting grim results.
Investors are also keeping a close watch on the Personal Consumption Expenditures price index on Friday, which is the Fed’s preferred inflation measure.
Here’s where US indexes stood at the 4:00 p.m. closing bell on Wednesday:
Here’s what else happened today:
In commodities, bonds, and crypto:
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Stock Market News Today: Dow Sinks 476 Points As Recession Fears Snap Win Streak – Markets Insider
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