{"id":48599,"date":"2024-12-20T12:28:36","date_gmt":"2024-12-20T12:28:36","guid":{"rendered":"https:\/\/thestockmarketwatch.com\/stock-market-news\/market-turbulence-continues-sp-500-nasdaq-and-dow-jones-struggle-amid-feds-cautious-stance\/48599\/"},"modified":"2024-12-20T12:28:36","modified_gmt":"2024-12-20T12:28:36","slug":"market-turbulence-continues-sp-500-nasdaq-and-dow-jones-struggle-amid-feds-cautious-stance","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/market-turbulence-continues-sp-500-nasdaq-and-dow-jones-struggle-amid-feds-cautious-stance\/48599\/","title":{"rendered":"Market Turbulence Continues: S&#038;P 500, Nasdaq, and Dow Jones Struggle Amid Fed&#8217;s Cautious Stance"},"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-turbulence-continues-sp-500-nasdaq-and-dow-jones-struggle-amid-feds-cautious-stance\/48599\/#Major_Indexes_Face_Downward_Pressure_as_Investors_Digest_Feds_Outlook\" >Major Indexes Face Downward Pressure as Investors Digest Fed&#8217;s 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\/market-turbulence-continues-sp-500-nasdaq-and-dow-jones-struggle-amid-feds-cautious-stance\/48599\/#Current_Market_Performance\" >Current Market Performance<\/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-turbulence-continues-sp-500-nasdaq-and-dow-jones-struggle-amid-feds-cautious-stance\/48599\/#Key_Factors_Influencing_Market_Sentiment\" >Key Factors Influencing Market Sentiment<\/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-turbulence-continues-sp-500-nasdaq-and-dow-jones-struggle-amid-feds-cautious-stance\/48599\/#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\/market-turbulence-continues-sp-500-nasdaq-and-dow-jones-struggle-amid-feds-cautious-stance\/48599\/#Looking_Ahead_Market_Catalysts\" >Looking Ahead: Market Catalysts<\/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-turbulence-continues-sp-500-nasdaq-and-dow-jones-struggle-amid-feds-cautious-stance\/48599\/#Expert_Insights\" >Expert Insights<\/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\/market-turbulence-continues-sp-500-nasdaq-and-dow-jones-struggle-amid-feds-cautious-stance\/48599\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Major_Indexes_Face_Downward_Pressure_as_Investors_Digest_Feds_Outlook\"><\/span>Major Indexes Face Downward Pressure as Investors Digest Fed&#8217;s Outlook<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>As of Friday, December 20, 2024, the U.S. stock market continues to grapple with the aftermath of the Federal Reserve&#8217;s recent policy decision. The major indexes are poised for a challenging day, reflecting ongoing investor concerns about the pace of future interest rate cuts and their potential impact on the economy.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Current_Market_Performance\"><\/span>Current Market Performance<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>As of the latest data available:<\/p>\n<p>&#8211; The <b><a href=\"https:\/\/stockmarketwatch.com\/indices\/sp500\/today\" data-internallinksmanager029f6b8e52c=\"3\" title=\"snp500 today\">S&#038;P 500<\/a> (^GSPC)<\/b> is down 0.8% in <a href=\"https:\/\/stockmarketwatch.com\/movers\/premarket\" data-internallinksmanager029f6b8e52c=\"7\" title=\"Premarket Movers\">pre-market trading<\/a>, hovering around 5,867 points.<br \/>&#8211; The <b><a href=\"https:\/\/stockmarketwatch.com\/indices\/dowjones\/today\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Dow Jones Today\">Dow Jones<\/a> Industrial Average (^DJI)<\/b> has shed 0.4%, or about 183 points, in futures trading.<br \/>&#8211; The <b>Nasdaq Composite (^IXIC)<\/b> is experiencing the most significant pressure, with futures down 1.4%.<\/p>\n<p>These declines follow a brief respite on Thursday, where the Dow managed to eke out a 15-point gain, ending its 10-day losing streak\u2014the longest since 1974. However, the overall weekly performance remains bleak, with the Dow down 3.4%, potentially marking its worst week since March 2023.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Key_Factors_Influencing_Market_Sentiment\"><\/span>Key Factors Influencing Market Sentiment<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><b>1. Federal Reserve&#8217;s Cautious Stance:<\/b> The market&#8217;s current volatility stems from the Fed&#8217;s recent announcement that it expects fewer interest rate cuts in 2025 than previously anticipated. This cautious approach has led investors to reassess their expectations for economic growth and corporate earnings.<\/p>\n<p><b>2. Inflation Concerns:<\/b> Today, all eyes are on the release of the Personal Consumption Expenditures (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=PCE\">PCE<\/a>) price index, the Fed&#8217;s preferred inflation gauge. Analysts expect a 0.2% monthly increase and a 2.5% annual rise, with core inflation (excluding food and energy) projected at 2.9% annually\u2014still above the Fed&#8217;s 2% target.<\/p>\n<p><b>3. Tech Sector Volatility:<\/b> Major tech stocks are experiencing significant fluctuations. Tesla (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=TSLA\">TSLA<\/a>) is down 5% in pre-market trading, while other tech giants like Nvidia (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=NVDA\">NVDA<\/a>), Palantir, and Dell are also facing downward pressure.<\/p>\n<p><b>4. Government Shutdown Concerns:<\/b> The failure of a Trump-endorsed House Republican measure to fund the government has raised fears of a potential partial government shutdown, adding another layer of uncertainty to the market.<\/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>&#8211; <b>Micron Technology (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=MU\">MU<\/a>)<\/b>: Shares plummeted 17% following mixed quarterly results and a disappointing outlook.<br \/>&#8211; <b>Darden Restaurants (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=DRI\">DRI<\/a>)<\/b>: The Olive Garden parent saw its stock surge 15% after positive earnings results.<br \/>&#8211; <b>Accenture (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=ACN\">ACN<\/a>)<\/b>: The consulting giant&#8217;s shares dropped 4.5% due to weaker-than-expected quarterly revenue.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Looking_Ahead_Market_Catalysts\"><\/span>Looking Ahead: Market Catalysts<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Investors will be closely monitoring several key factors in the coming days:<\/p>\n<p>1. The PCE price index release, due this morning.<br \/>2. The University of Michigan&#8217;s consumer sentiment index, also scheduled for release today.<br \/>3. Ongoing negotiations to avert a government shutdown.<br \/>4. Corporate earnings reports and guidance for the upcoming quarter.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Expert_Insights\"><\/span>Expert Insights<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Mike Dickson, head of research and quantitative strategies at Horizon Investments, commented on the potential market reaction to today&#8217;s PCE data: &#8220;Whatever the reaction is going to be, it&#8217;s probably going to be more severe one way or the other than it would have been prior to seeing the Fed really increase those expectations.&#8221;<\/p>\n<p>Paul Christopher, head of global investment strategy at Wells Fargo Investment Institute, maintains a positive outlook despite the current turbulence: &#8220;We continue to foresee a strong economy heading into 2025 \u2013 we maintain our outlook for earnings growth and an S&#038;P 500 Index target range of 6500-6700.&#8221;<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>As the market navigates through this period of uncertainty, investors are advised to stay vigilant and maintain a long-term perspective. The interplay between inflation data, Fed policy, and corporate performance will likely continue to drive market dynamics in the near term. While the current outlook appears challenging, opportunities may arise for those who can weather the volatility and identify undervalued assets in this complex economic landscape.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Major Indexes Face Downward Pressure as Investors Digest Fed&#8217;s Outlook As of Friday, December 20, 2024, the U.S. stock market [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":50312,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"rank_math_schema_Article":[],"rank_math_focus_keyword":[],"rank_math_description":[],"financial_data_references":[],"stock_symbols_mentioned":[],"footnotes":""},"categories":[94],"tags":[4,263,311,633,3749,3970],"class_list":["post-48599","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-market-update","tag-tsla","tag-acn","tag-mu","tag-nvda","tag-pce","tag-dri"],"_links":{"self":[{"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/posts\/48599","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/comments?post=48599"}],"version-history":[{"count":0,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/posts\/48599\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/media\/50312"}],"wp:attachment":[{"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/media?parent=48599"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/categories?post=48599"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/tags?post=48599"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}