Dow Plunges 1,100 Points as Fed Lowers Interest Rate Cut Outlook. Fed’s Powell Cites Uncertainty in Slower Rate Cut Pace.

The stock market experienced a sharp decline on Wednesday, triggered by the Federal Reserve’s revised outlook for interest rate cuts in 2024. The Dow Jones Industrial Average dropped 1,100 points. This marked its largest drop since August, its tenth consecutive day of losses, and the longest streak since 1974. The S&P 500 fell nearly 3%, while the Nasdaq plunged 3.5%. The Fed cut interest rates but reduced its forecast for future cuts. Fed Chair Jerome Powell indicated that a slower pace of rate cuts was influenced by inflation concerns and policy uncertainty under Trump.