LATEST DEVELOPMENTS RIGHT NOW FROM OUR NEWSROOM. EMILY ED MARIA A TOUGH DAY FOR THE MARKETS. THIS COMES AFTER THE FEDERAL RESERVE PENCILING JUST TWO RATE CUTS FOR NEXT YEAR, INSTEAD OF THE FOUR THAT HAD BEEN ON THE RADAR. STOCKS TAKING A MAJOR NOSEDIVE ACROSS THE BOARD. THE DOW SEEING AN 1100 POINT DROP, THE LARGEST SINGLE DAY DROP SO FAR THIS YEAR. THE FED SAYING TODAY IT IS CUTTING ITS MAIN INTEREST RATE FOR THE THIRD TIME THIS YEAR. BUT THE BIG QUESTION IS HOW MUCH MORE? THE FEDERAL RESERVE COULD CUT NEXT YEAR. OUR FINANCIAL EXPERT LAYS OUT WHAT THIS COULD MEAN FOR YOU. MARKETS SOLD OFF TODAY BECAUSE ONE OF THE MAIN ENTITIES IN CHARGE OF OUR ECONOMY SAID THAT THEY’RE EXPECTING MORE GROWTH. A ROBUST LABOR MARKET. YOU KNOW, THINGS THAT ARE FUNDAMENTALLY GOOD FOR OUR ECONOMY, THAT MIGHT NOT BE GREAT FOR STOCKS IN THE SHORT TERM. THAT’S ONE OF THOSE THINGS THAT I THINK, GENERALLY SPEAKING, WE CAN GET OVER. BUT PRACTICALLY SPEAKING, WHAT IT MEANS IS IF YOU’RE LOOKING FOR A 6% MORTGAGE RATE ANYTIME SOON, IT’S PROBABLY NOT HAPPENING. AT LEAST ACCORDING TO WHAT THE FED THINKS. THE FED SAYS STUBBORN INFLATION RATES COMBINED WITH TO BE DETERMINED CHANGES IN THE ECONOMY AND UNCERTAINTY OF A NEW PRESIDENTIAL ADMINISTRATION ARE SOME OF THE FACTORS LEADING TO THE CALL TO SLOW RATE CUTS. THE FED CHAIR, JEROME POWELL, SAYING TODAY, WHEN THE PATH IS UNCERTAIN, YOU TAKE THINGS A LITTLE SLOWER, SAYING THAT’S THEIR APPROACH, AT LEAS
Massachusetts financial advisors react to Dow Jones closing down 1,100 points
U.S. stocks fell to their second-worst drop of the year on Wednesday, on diminished hopes for 2025 rate cuts.Dow Jones closed down more than 1,100 points, marking its longest losing streak since 1974. This comes after the Federal Reserve pencils in just two rate cuts for next year, instead of the four that had been on the radar.The Federal Reserve said it is cutting its main interest rate for the third time this year, but the big question is how much more the Federal Reserve could cut next year.”Markets sold off today because one of the main entities said that they’re expecting more growth, a robust labor market, things that are fundamentally good for our economy,” Mike Armstrong from the Armstrong Advisory Group said.”That might not be great for stocks in the short term. That’s one of those things that I think we can get over. But practically speaking, what it means, if you’re looking for a 6% mortgage rate any time soon, it’s probably not happening, at least according to what the Federal Reserve thinks.”The Federal Reserve said stubborn inflation rates, combined with to-be-determined changes in the economy and uncertainty of a new presidential administration are some of the factors leading to the call to slow rate cuts.Federal Reserve Chair Jerome Powell said, “When the path is uncertain, you take things a little slower”, saying that’s their approach, at least for now.
U.S. stocks fell to their second-worst drop of the year on Wednesday, on diminished hopes for 2025 rate cuts.
Dow Jones closed down more than 1,100 points, marking its longest losing streak since 1974.
This comes after the Federal Reserve pencils in just two rate cuts for next year, instead of the four that had been on the radar.
The Federal Reserve said it is cutting its main interest rate for the third time this year, but the big question is how much more the Federal Reserve could cut next year.
“Markets sold off today because one of the main entities said that they’re expecting more growth, a robust labor market, things that are fundamentally good for our economy,” Mike Armstrong from the Armstrong Advisory Group said.
“That might not be great for stocks in the short term. That’s one of those things that I think we can get over. But practically speaking, what it means, if you’re looking for a 6% mortgage rate any time soon, it’s probably not happening, at least according to what the Federal Reserve thinks.”
The Federal Reserve said stubborn inflation rates, combined with to-be-determined changes in the economy and uncertainty of a new presidential administration are some of the factors leading to the call to slow rate cuts.
Federal Reserve Chair Jerome Powell said, “When the path is uncertain, you take things a little slower”, saying that’s their approach, at least for now.
