Spiking bond yields triggered the broad market selloff
The Federal Reserve cut interest rates by 25 basis points this afternoon, as expected, but stocks and bond yields did not react well to the central bank's interest rate outlook. Once the Fed's vaunted "dot plot" forecasted a fewer-than-expected two rate cuts for 2025, all three major indexes pivoted sharply lower, while the 10-year Treasury yield spiked to 4.47%.
The selloff was exacerbated by cautionary rhetoric from Fed Chair Jerome Powell. The Dow shed 1,123 points -- its worst single-day decline since September 2022 -- for its 10th straight loss and longest losing streak since 1974. The S&P 500 and Nasdaq also gapped lower to their respective 6,000 and 20,000 levels, suffering their worst single-session slides since 2020.
Continue reading for more on today's market, including:
- 3 nuclear stocks at intriguing entry points.
- Analyst pumps the brakes on the Rivian rally.
- Plus, the worst Dow stock of 2024; GIS' gap lower; and Birkenstock breaks out.
5 Things to Know Today
- The U.S. ranks first in the world in initial public offerings (IPOs). (MarketWatch)
- The Supreme Court will hear a challenge to the TikTok ban. (CNBC)
- Call traders unfazed by the year Boeing stock had.
- General Mills just trimmed its 2025 outlook.
- BIRK benefitting from the latest shoe trends.
Gold Prices Pull Back Against the Dollar
Oil prices bounced back today, getting a much-needed lift from the second-straight weekly fall in U.S. crude inventories. January-dated West Texas Intermediate (WTI) crude added $1, or 1.4%, to settle at $71.08 per barrel.
Gold prices fell as the dollar roared to life at the Fed rhetoric implying a slower pace of rate cuts. For the session, gold for December delivery lost 0.3% to settle at $2,653.30 an ounce.