MARKET WRAP

Stocks failed to hold onto gains after Wednesday’s rout. The S&P 500 and Nasdaq closed the day lower after spending most of the session in the green. The Dow managed to rise slightly, snapping its 10-day losing streak. On the sector front, financials and utilities led to the upside. Nvidia shares, which had previously weighed down the Dow, saw a more than 1% increase.

The market reacted after the Federal Reserve reduced interest rates by a quarter percentage point, setting the target range at 4.25% to 4.5%. However, the Fed's indication of fewer rate cuts than previously expected for the coming year has caused some market uncertainty. This shift in the Fed's outlook led to a significant market downturn on Wednesday, with the Dow experiencing its longest losing streak since 1974.

As a result, CNBC notes that some analysts are advising caution, suggesting that the current market correction could persist for some time.

MRKT MATRIX: December 19, 2024

Today’s Top Stories:

• Dow rises after Wednesday’s rout, snaps 10-day decline (CNBC)

• The Next Big Fed Debate: Has the Era of Very Low Rates Ended? (WSJ)

• US Yield Curve Is Steepest Since 2022 After Fed’s Rate-Cut Shift (Bloomberg)

• Jeffrey Gundlach says increase cash positions as decent yields don’t appear to be going away (CNBC)

• Micron downgraded at BofA on gross margin, pricing headwinds (Yahoo Finance)

• This ‘under-the-radar AI name’ is set to jump 40% in 2025, says Wedbush’s Dan Ives (CNBC)

• Musk Draws First Blood With Spending Bill Bombshell (WSJ)

• How Vuori reached a $5.5 billion valuation by taking share from Lululemon (CNBC)

Today’s MRKT Call is Presented by FactSet

Stocks React to Fed Guiance

Sign up below to receive daily MRKT Call reminders and early access to the charts featured in the show.

Subscribe to the RiskReversal YouTube Channel and drop a comment/like to show your support

Want to check out past podcast episodes? Go to wherever you get your podcasts and type in “RiskReversal Media”

We want to hear your feedback! Reply to this email with any comments or questions