The stock market plunged Wednesday, just hours after the Federal Reserve announced a quarter-point interest rate cut.
The Dow fell more than 1,000 points, marking its largest drop for the index since August.
This is the Dow’s tenth consecutive day of losses, the longest since 1974.
In the fall, the Fed said it intended to start rolling back on its effort to combat inflation.
Since then, it has cut rates three times, with officials suggesting Wednesday’s cut may be the last for a while.
>> Download the free WMUR app to get updates on the go: Apple | Google Play <<
The central bank said it’s lowering expectations for rate cuts next year, and investors were expecting several cuts.
Experts said those lowered expectations from the Fed are what’s causing the market to pull back, and consumers should take advantage of it.
“For folks out there that are still saving and still investing in the 401(k)s and IRAs, this is actually a great opportunity when you see declines in the market, and you’re putting money in on a regular basis into your 401(k). If you’re putting your money in, let’s say today, you now just invested at a lower level than you had yesterday or the week prior,” said Sean Tole from Davis Wealth Management.
Next year, the Fed projects only a half-point rate cut, followed by another half-point cut in 2026.
