{"id":48596,"date":"2024-12-19T22:01:41","date_gmt":"2024-12-19T22:01:41","guid":{"rendered":"https:\/\/thestockmarketwatch.com\/stock-market-news\/market-recap-wall-street-ends-mixed-after-feds-cautious-stance-on-rate-cuts\/48596\/"},"modified":"2024-12-19T22:01:41","modified_gmt":"2024-12-19T22:01:41","slug":"market-recap-wall-street-ends-mixed-after-feds-cautious-stance-on-rate-cuts","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/market-recap-wall-street-ends-mixed-after-feds-cautious-stance-on-rate-cuts\/48596\/","title":{"rendered":"Market Recap: Wall Street Ends Mixed After Fed&#8217;s Cautious Stance on Rate Cuts"},"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\/market-recap-wall-street-ends-mixed-after-feds-cautious-stance-on-rate-cuts\/48596\/#Major_Indexes_Close_Flat_as_Market_Digests_Feds_Decision\" >Major Indexes Close Flat as Market Digests Fed&#8217;s Decision<\/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\/market-recap-wall-street-ends-mixed-after-feds-cautious-stance-on-rate-cuts\/48596\/#Federal_Reserves_Stance_and_Market_Reaction\" >Federal Reserve&#8217;s Stance 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\/market-recap-wall-street-ends-mixed-after-feds-cautious-stance-on-rate-cuts\/48596\/#Economic_Indicators_and_Treasury_Yields\" >Economic Indicators and Treasury Yields<\/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\/market-recap-wall-street-ends-mixed-after-feds-cautious-stance-on-rate-cuts\/48596\/#Corporate_News_and_Stock_Movements\" >Corporate News and 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\/market-recap-wall-street-ends-mixed-after-feds-cautious-stance-on-rate-cuts\/48596\/#Looking_Ahead_Market_Events_and_Expectations\" >Looking Ahead: Market Events and Expectations<\/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\/market-recap-wall-street-ends-mixed-after-feds-cautious-stance-on-rate-cuts\/48596\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Major_Indexes_Close_Flat_as_Market_Digests_Feds_Decision\"><\/span>Major Indexes Close Flat as Market Digests Fed&#8217;s Decision<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>On Thursday, December 19, 2024, <b>U.S. stock markets ended the day with mixed results<\/b> following Wednesday&#8217;s significant sell-off triggered by the Federal Reserve&#8217;s cautious outlook on interest rate cuts for 2025. The market&#8217;s initial rebound in early trading gradually faded, leaving major indexes near flat by the closing bell.<\/p>\n<p>The <b><a href=\"https:\/\/stockmarketwatch.com\/indices\/sp500\/today\" data-internallinksmanager029f6b8e52c=\"3\" title=\"snp500 today\">S&#038;P 500<\/a> (^GSPC) edged down 0.1% to 5,867.08<\/b>, while the <b><a href=\"https:\/\/stockmarketwatch.com\/indices\/dowjones\/today\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Dow Jones Today\">Dow Jones<\/a> Industrial Average (^DJI) inched up less than 0.1% to 42,342.24<\/b>. The <b>tech-heavy Nasdaq Composite (^IXIC) slipped 0.1% to 19,372.77<\/b>. These minor movements came after one of the worst trading days of the year, highlighting investors&#8217; ongoing recalibration of expectations following the Fed&#8217;s latest policy decision.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Federal_Reserves_Stance_and_Market_Reaction\"><\/span>Federal Reserve&#8217;s Stance and Market Reaction<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The market&#8217;s volatility stems from the Federal Reserve&#8217;s announcement on Wednesday, where it cut interest rates by a quarter percentage point to a range of 4.25% to 4.5%. However, <b>Fed Chair Jerome Powell&#8217;s comments suggesting a more cautious approach to future rate cuts<\/b> caught investors off guard.<\/p>\n<p>Powell stated, &#8220;I think we&#8217;re in a good place, but I think from here it&#8217;s a new phase and we&#8217;re going to be cautious about further cuts.&#8221; This sentiment was reflected in the Fed&#8217;s projections, which now indicate <b>only two quarter-point rate reductions by the end of 2025<\/b>, half of what was anticipated in September.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Economic_Indicators_and_Treasury_Yields\"><\/span>Economic Indicators and Treasury Yields<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The bond market reacted to the Fed&#8217;s stance, with the <b>yield on the benchmark 10-year Treasury note reaching a seven-month high of 4.524%<\/b> before settling at 4.51% by the end of Thursday. This surge in yields reflects investors&#8217; reassessment of the economic landscape and inflation expectations.<\/p>\n<p>Recent economic data has shown signs of resilience in the U.S. economy. The <b>final GDP reading for the third quarter was revised upward to 3.1%<\/b>, surpassing the previous estimate of 2.8%. Additionally, <b>initial jobless claims for the week came in at 220,000<\/b>, lower than expected and indicating a still-robust job market.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Corporate_News_and_Stock_Movements\"><\/span>Corporate News and Stock Movements<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Several companies made headlines on Thursday:<\/p>\n<p>1. <b>Micron Technology (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=MU\">MU<\/a>)<\/b> saw its shares tumble 16.18% after reporting mixed quarterly results and issuing a disappointing outlook.<\/p>\n<p>2. <b>Darden Restaurants (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=DRI\">DRI<\/a>)<\/b>, parent company of Olive Garden, surged 14.74% following better-than-expected earnings.<\/p>\n<p>3. <b>Tesla (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=TSLA\">TSLA<\/a>)<\/b> showed resilience, gaining 2% despite the overall market uncertainty.<\/p>\n<p>4. <b>Nvidia (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=NVDA\">NVDA<\/a>)<\/b> continued its strong performance, rising 1.37% as demand for AI chips remains robust.<\/p>\n<p>5. <b>Rigetti Computing (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=RGTI\">RGTI<\/a>)<\/b> experienced a significant drop of 30.12%, making it one of the day&#8217;s biggest losers.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Looking_Ahead_Market_Events_and_Expectations\"><\/span>Looking Ahead: Market Events and Expectations<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>As we approach the end of 2024, investors are closely watching several key factors:<\/p>\n<p>1. <b>Inflation data:<\/b> The core PCE price index, the Fed&#8217;s preferred inflation gauge, is expected to show a slight uptick to 2.2% in the final reading for the quarter.<\/p>\n<p>2. <b>Corporate earnings:<\/b> With the Q4 earnings season on the horizon, market participants will be keen to see how companies have navigated the high-interest rate environment.<\/p>\n<p>3. <b>Global economic developments:<\/b> The Bank of Japan&#8217;s upcoming policy decision and its potential impact on currency markets, particularly the yen, which is hovering near the 155 per dollar mark.<\/p>\n<p>4. <b>Tech sector performance:<\/b> The continued strength of mega-cap tech stocks and their influence on overall market direction.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>As 2024 draws to a close, the stock market finds itself at a crossroads. The Federal Reserve&#8217;s cautious approach to rate cuts has injected a note of uncertainty into what has been a strong year for equities. With the S&#038;P 500 up 23% year-to-date, investors are reassessing their strategies for 2025, balancing optimism about economic resilience against concerns over the pace of monetary policy easing.<\/p>\n<p>The coming weeks will be crucial in determining market sentiment as we enter the new year, with economic data and corporate performance likely to play pivotal roles in shaping investor expectations.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Major Indexes Close Flat as Market Digests Fed&#8217;s Decision On Thursday, December 19, 2024, U.S. stock markets ended the day 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