The Federal Reserve made a big move today—significantly reducing rate cut expectations! As a result, the global market is in chaos, and big fluctuations are coming! 👇
The Federal Reserve's new actions
Today (December 19), the Federal Reserve cut rates by 25 basis points as expected, but the key point is that it significantly raised future interest rate and inflation expectations.
It was originally expected that there would be more rate cuts in 2024, but they suddenly told everyone 'only two times, 50 basis points', which is much smaller than expected! The pace of rate cuts has slowed, and the market is starting to get nervous!
U.S. stocks have crashed, with all three major indices diving.
U.S. stocks have directly crashed this time! The S&P 500 index fell by 2.95%, the Dow Jones dropped by 2.58%, marking a continuous decline for 10 trading days, creating the worst streak since 1974! The Nasdaq index also fell by 3.56%.
Even Tesla couldn't escape, with its stock price plummeting over 8%, becoming the leader of the tech stock decline.
The cryptocurrency market has 'collapsed'! Bitcoin has fallen below the $100,000 mark!
The Federal Reserve's recent actions have sent a chill through the crypto market, with Bitcoin briefly dropping below $100,000, plummeting straight down.
Powell's statement that 'the Federal Reserve does not allow and has no intention of holding Bitcoin' has completely ignited the spark for selling!
As of the time of publication, Bitcoin has fallen by 6.2%, with the price dropping to $99,235. Ethereum has also dropped to $3,542, a decline of 7.27%. Altcoins are even worse, with most coins falling by double digits.
The forex and commodity markets are also affected by the fluctuations.
The change in the Federal Reserve's rate cut expectations has caused the U.S. dollar index to soar by 1%, reaching a new high in two years! Meanwhile, gold has suffered a heavy blow, with a decline of over 1%, reaching a new low in a month. As for the oil market, due to the Federal Reserve's slowing pace of rate cuts, oil prices surged and then retreated, with the increase gradually being digested.
The global market has undergone a sudden change, and investors need to be especially cautious!
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The Federal Reserve's hawkish stance has caused turmoil in the global market, especially in the stock and crypto markets, leading to severe fluctuations. Investors need to closely monitor market dynamics, reasonably arrange investment strategies, and avoid risks!