The US stock market has seen its sharpest decline in months, with the Dow Jones Industrial Average tumbling 1,123 points—or 2.58%—to close at 42,326.87. This marks the Dow’s first 10-day losing streak since 1974, wiping 6% from its value since early December. The S&P 500 fell 2.95% to 5,872.16, while the Nasdaq dropped 3.56% to 19,392.69, with all major indices posting their steepest losses since August.
The sell-off was triggered by a shift in Federal Reserve policy. While the Fed cut its policy rate by 25 basis points, it announced a slower pace of rate reductions in 2025—just two cuts instead of the previously expected four. Fed Chair Jerome Powell said the central bank’s recent moves gave it room to be “more cautious” with future rate adjustments. Treasury yields climbed, with the 10-year yield rising to 4.50%, further pressuring equities.
The impact extended to Australia. The Australian dollar fell, trading at US62.26¢ as the US dollar strengthened.
ASX futures are signally a 134 point fall at the open.
