{"id":48593,"date":"2024-12-19T15:28:39","date_gmt":"2024-12-19T15:28:39","guid":{"rendered":"https:\/\/thestockmarketwatch.com\/stock-market-news\/stock-market-today-markets-rebound-after-fed-induced-selloff\/48593\/"},"modified":"2024-12-19T15:28:39","modified_gmt":"2024-12-19T15:28:39","slug":"stock-market-today-markets-rebound-after-fed-induced-selloff","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/stock-market-today-markets-rebound-after-fed-induced-selloff\/48593\/","title":{"rendered":"Stock Market Today: Markets Rebound After Fed-Induced Selloff"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/stock-market-today-markets-rebound-after-fed-induced-selloff\/48593\/#Major_Indexes_Recover_as_Investors_Digest_Feds_Rate_Outlook\" >Major Indexes Recover as Investors Digest Fed&#8217;s Rate Outlook<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/stock-market-today-markets-rebound-after-fed-induced-selloff\/48593\/#Feds_Rate_Decision_and_Market_Reaction\" >Fed&#8217;s Rate Decision and Market Reaction<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/stock-market-today-markets-rebound-after-fed-induced-selloff\/48593\/#Key_Economic_Data_Released\" >Key Economic Data Released<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/stock-market-today-markets-rebound-after-fed-induced-selloff\/48593\/#Notable_Stock_Movements\" >Notable Stock Movements<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/stock-market-today-markets-rebound-after-fed-induced-selloff\/48593\/#Upcoming_Market_Events\" >Upcoming Market Events<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/stock-market-today-markets-rebound-after-fed-induced-selloff\/48593\/#Market_Outlook_and_Analyst_Perspectives\" >Market Outlook and Analyst Perspectives<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/stock-market-today-markets-rebound-after-fed-induced-selloff\/48593\/#Global_Market_Context\" >Global Market Context<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Major_Indexes_Recover_as_Investors_Digest_Feds_Rate_Outlook\"><\/span>Major Indexes Recover as Investors Digest Fed&#8217;s Rate Outlook<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>On Thursday, December 19, 2024, U.S. stock markets are showing signs of recovery following yesterday&#8217;s significant selloff triggered by the Federal Reserve&#8217;s interest rate projections. As of 10:14 AM EST, the <b><a href=\"https:\/\/stockmarketwatch.com\/indices\/sp500\/today\" data-internallinksmanager029f6b8e52c=\"3\" title=\"snp500 today\">S&#038;P 500<\/a> is up 0.37% to 5,894.09, the <a href=\"https:\/\/stockmarketwatch.com\/indices\/dowjones\/today\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Dow Jones Today\">Dow Jones<\/a> Industrial Average has gained 0.36% to 42,477.65, and the Nasdaq Composite has risen 0.39% to 19,467.47<\/b>.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Feds_Rate_Decision_and_Market_Reaction\"><\/span>Fed&#8217;s Rate Decision and Market Reaction<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The market turbulence stems from the Federal Reserve&#8217;s decision on December 18 to <b>lower its benchmark overnight borrowing rate to a target range of 4.25% to 4.5%<\/b>. However, the central bank signaled it was likely to implement only two interest rate cuts in 2025, down from the four reductions previously anticipated. This more hawkish stance led to a sharp market decline, with the Dow Jones Industrial Average experiencing its <b>longest losing streak since 1974<\/b>.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Key_Economic_Data_Released\"><\/span>Key Economic Data Released<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Today&#8217;s market rebound is supported by several important economic indicators released this morning:<\/p>\n<p>1. <b>Initial Jobless Claims<\/b>: Reported at 220,000, down from the previous week&#8217;s 242,000, indicating a resilient labor market.<br \/>2. <b>Core PCE Prices (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=Final\">Final<\/a>)<\/b>: Increased to 2.2% from the previous 2.1%, suggesting slightly higher inflation pressures.<br \/>3. <b>GDP Final (Q3 2024)<\/b>: Revised upward to 3.1% from the earlier estimate of 2.8%, showcasing stronger economic growth.<\/p>\n<p>These data points suggest that the U.S. economy remains robust, potentially justifying the Fed&#8217;s cautious approach to future rate cuts.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Notable_Stock_Movements\"><\/span>Notable Stock Movements<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Several stocks are making significant moves in today&#8217;s trading session:<\/p>\n<p>&#8211; <b>Micron Technology (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=MU\">MU<\/a>)<\/b>: Down 17.71% after issuing weaker-than-expected guidance for Q2 2025.<br \/>&#8211; <b>Darden Restaurants (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=DRI\">DRI<\/a>)<\/b>: Up 14.24% following strong earnings results.<br \/>&#8211; <b>Accenture (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=ACN\">ACN<\/a>)<\/b>: Gained 6.84% after beating quarterly expectations.<br \/>&#8211; <b>Lamb Weston Holdings (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=LW\">LW<\/a>)<\/b>: Plummeted 20.15% due to a surprise loss and CEO resignation.<br \/>&#8211; <b>Vertex Pharmaceuticals (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=VRTX\">VRTX<\/a>)<\/b>: Fell 11.94% on news related to its drug pipeline.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Upcoming_Market_Events\"><\/span>Upcoming Market Events<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Investors are closely watching several key events that could impact market sentiment in the coming days:<\/p>\n<p>1. <b>Nike (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=NKE\">NKE<\/a>) Earnings Report<\/b>: The sportswear giant is set to release its Q2 2025 results after market close today, marking the first report under new CEO Elliott Hill.<br \/>2. <b>FedEx (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=FDX\">FDX<\/a>) Earnings<\/b>: The shipping company is expected to report earnings growth in its Q2 2025 results, also scheduled for release after today&#8217;s closing bell.<br \/>3. <b>Holiday Shopping Data<\/b>: With the crucial holiday shopping season in full swing, retail sales figures and consumer spending trends will be closely monitored.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Market_Outlook_and_Analyst_Perspectives\"><\/span>Market Outlook and Analyst Perspectives<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Despite the recent volatility, many analysts remain cautiously optimistic about the market&#8217;s prospects. LPL Financial chief equity strategist Jeff Buchbinder noted, &#8220;Stretched positioning and sentiment left stocks vulnerable to a selloff. The big jump in inflation expectations and related bond selloff was a convenient excuse.&#8221;<\/p>\n<p>However, concerns persist about the impact of higher interest rates on economic growth and corporate earnings. The yield on the 10-year Treasury note has risen above 4.5%, potentially pressuring equity valuations.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Global_Market_Context\"><\/span>Global Market Context<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>International markets are also reacting to the Fed&#8217;s decision, with European stocks sliding as central banks take center stage. The Bank of England held interest rates steady, influencing currency markets and the U.S. dollar&#8217;s strength.<\/p>\n<p>As we approach the end of 2024, investors are reassessing their portfolios and strategies for the coming year. The interplay between economic data, corporate earnings, and central bank policies will continue to shape market dynamics in the weeks and months ahead.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Major Indexes Recover as Investors Digest Fed&#8217;s Rate Outlook On Thursday, December 19, 2024, U.S. stock markets are showing signs 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