The Federal Reserve has made a bold move today—significantly lowering interest rate expectations! As a result, the global market is in chaos, and significant volatility has arrived! 👇
New actions from the Federal Reserve.
Today (December 19), the Federal Reserve has cut interest rates by 25 basis points as promised, but the key point is that it has significantly raised future interest rate and inflation expectations.
Initially, more interest rate cuts were expected in 2024, but suddenly it was announced, 'only twice, 50 basis points', which is much smaller than anticipated! The pace of rate cuts has slowed, and the market is starting to get nervous!
The US stock market has crashed, with all three major indices plummeting.
The US stock market has directly crashed this time! The S&P 500 index fell by 2.95%, the Dow Jones down by 2.58%, marking 10 consecutive trading days of decline, creating the worst losing streak since 1974! The Nasdaq index also dropped by 3.56%.
Even Tesla was not spared, with its stock price plummeting over 8%, becoming the leading loser among tech stocks.
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 falling below $100,000 in a sharp decline.
Powell's statement, 'The Federal Reserve does not allow nor intends to hold Bitcoin,' has completely ignited the selling frenzy!
As of the time of writing, Bitcoin has dropped by 6.2%, with the price falling to $99,235. Ethereum has also fallen to $3,542, with a drop of 7.27%. Altcoins are in even worse shape, with most cryptocurrencies experiencing double-digit declines.
The foreign exchange and commodity markets are also experiencing volatility.
The change in the Federal Reserve's interest rate cut expectations has caused the US dollar index to soar by 1%, reaching a two-year high! Meanwhile, gold has encountered heavy losses, with a drop of over 1%, hitting a new low in a month. As for the oil market, due to the Federal Reserve's slowing pace of rate cuts, oil prices have risen and then retreated, with the gains gradually being digested.
The global market is undergoing a dramatic change, and investors need to be extra cautious!
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The Federal Reserve's hawkish stance has caused significant turmoil in the global market, especially in the stock and crypto markets, leading to extreme volatility. Investors should closely monitor market dynamics, arrange investment strategies reasonably, and avoid risks!
