According to BlockBeats, on December 19, the Federal Reserve cut interest rates by 25 basis points as expected, indicating that the pace of rate cuts will slow down. The U.S. stock market fell, erasing earlier gains.
The Dow Jones Industrial Average is set to fall for the 10th consecutive trading day, which would be the longest streak of daily declines since October 1974 when it fell for 11 straight days. All 11 major sectors of the S&P 500 declined, with real estate leading the losses.
Higher interest rates are generally seen as a drag on the stock market, increasing the appeal of lower-risk assets while suppressing companies' ability to increase earnings. (Gold Ten)