As of Wednesday, December 18, 2024, the U.S. stock market presents a mixed picture, with investors eagerly anticipating the Federal Reserve’s final rate decision of the year. The Dow Jones<\/a> Industrial Average<\/b> (DJIA<\/a>) enters trading on a nine-day losing streak, the longest stretch of consecutive daily declines for the blue-chip index since 1978 . Despite this recent slump, which equates to nearly 1,600 points, the Dow is still up 15% in 2024, currently trading at 43,594.69, up 0.33% .<\/p>\n The S&P 500<\/a><\/b> and Nasdaq Composite<\/b> are showing more resilience, with both averages up for the month. The S&P 500 is currently at 6,053.21, up 0.04%, while the Nasdaq stands at 20,106.53, down slightly by 0.01% . Year-to-date, the S&P 500 has surged an impressive 27%, while the Nasdaq Composite has jumped 34%, significantly outperforming the Dow due to their larger exposure to mega-cap tech companies .<\/p>\n The most significant event on today’s economic calendar is the Federal Reserve’s rate decision<\/b>, expected at 2:00 PM ET. Markets are widely anticipating a 25 basis point reduction in interest rates, which would bring the target range to 4.25% to 4.5% . However, the rate cut itself is not the only focus for investors.<\/p>\n Traders will be closely watching the Fed’s summary of economic projections<\/b> (SEP<\/a>), which includes the “dot plot” of rate projections, as well as comments from Fed Chair Jerome Powell. These will provide crucial insights into the potential rate path for 2025 . Some analysts, like those at ING, suggest that the prospect of fiscal stimulus among other policies promised by U.S. President-elect Donald Trump may force some scaling back in expected rate cuts included in dot plot projections .<\/p>\n In the realm of individual stocks, several companies are making headlines:<\/p>\n 1. Nvidia (NVDA<\/a>)<\/b>: The AI giant is up over 3% in premarket<\/a> trading after hitting a two-month low on Tuesday. The stock is currently trading at $135.10, up 3.61% .<\/p>\n 2. Tesla (TSLA<\/a>)<\/b>: After rising over 14% in the last three sessions, Tesla has dropped 2.8% in premarket<\/a> trading .<\/p>\n 3. Birkenstock (BIRK<\/a>)<\/b>: The company’s stock edged lower after forecasting fiscal 2025 revenue growth below market expectations .<\/p>\n 4. Crypto-focused stocks<\/b>: As bitcoin fell 2%, stocks like MARA Holdings (MARA<\/a>) and Riot Platforms (RIOT<\/a>) are down 1.8% and 2.4% respectively .<\/p>\n 5. Quantum Computing Inc. (QUBT<\/a>)<\/b> and D-Wave Quantum Inc. (QBTS<\/a>)<\/b>: These stocks are among the top gainers<\/a>, up 35.72% and 19.64% respectively .<\/p>\n As we approach the end of 2024, the stock market remains poised for a strong finish despite recent volatility. The S&P 500’s 27% gain puts the index on track for one of its best performances of the 21st century . However, investors should remain cautious as the Fed’s decision and guidance could significantly impact market sentiment.<\/p>\n The recent reacceleration of inflation, with the Consumer Price Index (CPI<\/a>) reaching 2.7% in November, adds another layer of complexity to the Fed’s decision-making process . This economic backdrop, coupled with a stronger-than-expected labor market, may influence the Fed to adopt a more cautious stance on rate cuts in 2025.<\/p>\n As we navigate these uncertain waters, investors should keep a close eye on key technical levels. For the Dow, major support levels to watch are around 43,300, 41,600, and 40,000, while the 45,000 level remains a significant overhead resistance area .<\/p>\nUpcoming Market Events: All Eyes on the Fed<\/h2>\n
Major Stock News: Tech Giants and Market Movers<\/h2>\n
Market Outlook: Cautious Optimism Amid Uncertainty<\/h2>\n