US Stocks Close Mostly Flat After Fed Day Tumble
Wall Street closed little changed on Thursday following the previous day's selloff as investors evaluated the potential impact of a hawkish Federal Reserve outlook on corporate returns in the coming year.
The S&P 500 and the Nasdaq 100 closed 0.1% and 0.5% lower respectively, while the Dow added 14 points, snapping a ten-session losing streak. While the Fed cut its funds rate by 25 basis points as expected, its Summary of Economic Projections indicated that policymakers anticipate no more than two rate cuts in 2025.
This hawkish outlook suggested a recalibration of risks between persistent inflation and a softening labor market, supported by data released today. The final GDP estimate for Q3 was revised higher, showing a 3.1% annualized growth rate, while initial jobless claims fell more than anticipated.
Utilities, financial and tech stocks led the gains, with Nvidia (1.7%), Apple (1%), and Amazon (1.5%) rising. Conversely, Micron shares dropped 16.5% following disappointing guidance.
Source: Trading Economics
