Weekly Market Update: December 23, 2024
12/23/24
Markets Sell Off Following Hawkish Fed Meeting
Markets ended the week lower, driven by hawkish projections and comments from the Fed. The S&P 500 declined -2.0%, the Nasdaq 100 fell -2.3%, and the Russell 2000 dropped -4.4% on the week. Treasury yields rose sharply across the curve for the second straight week. On Wednesday, the Federal Open Market Committee voted to reduce the federal funds rate by 25 basis points to a range of 4.25-4.50%, as expected. However, one member dissented in a rare occurrence. In his post-meeting press conference, Fed Chair Powell emphasized that inflation has been stickier than expected. Equities fell sharply on the day of the meeting.
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