The Dow Jones Industrial Average has narrowly ended its longest losing streak since 1974, adding 15.37 points to close at 42,342.24. The S&P 500 and Nasdaq both slipped slightly, down 0.09% and 0.1%, respectively. Early gains were erased as seven of the S&P 500’s 11 sectors closed lower. Investor sentiment remains cautious after the Federal Reserve announced a smaller-than-expected reduction in future rate cuts, with only two cuts forecast for 2025, down from four previously projected.
The Fed's decision to cut its benchmark rate to 4.25%-4.5% initially led to market turbulence, with the Dow plunging 1,123 points on Wednesday. US 10-year Treasury yields rose for a second day, now at 4.57%, further pressuring equities.
Oil prices also slipped, falling nearly 1% to just under US$70 a barrel as a stronger US dollar weighed on commodities. Chinese oil demand is seen as another drag, with the country's largest refiner warning petrol demand may have peaked.
Meanwhile, in the UK, the Bank of England paused its own rate cuts, citing rising wages and inflation.
In currencies, one Australian dollar at 8:30 was buying 62.4 US cents, 60.2 Euro cents and 98.19 Japanese yen.
Local markets are expected to follow Wall Street’s lead, with sentiment leaning risk-off after the Fed’s cautious outlook on rate cuts for 2025.
SPI futures are pointing to a 51 point or 0.62% fall.
Sources: Bloomberg, FactSet, IRESS, TradingView, UBS, Bourse Data, Trading Economics, CoinMarketCap, Marketech.
Disclaimer
The views, opinions or recommendations of the commentators in this presentation are solely those of the author and do not in any way reflect the views, opinions, recommendations, of Sequoia Financial Group Limited ABN 90 091 744 884 and its related bodies corporate (“SEQ”). SEQ makes no representation or warranty with respect to the accuracy, completeness or currency of the content. Any prices published are accurate subject to the time of filming and shouldn’t be relied upon to make a financial decision. Commentators may hold positions in stocks mentioned and companies may pay FNN to produce the content at times. The content is for educational purposes only and does not constitute financial advice. Independent advice should be obtained from an Australian Financial Services Licensee before making investment decisions. To the extent permitted by law, SEQ excludes all liability for any loss or damage arising in any way including by way of negligence.
