The Dow just extended its losing streak for the 10th day in a row – making it the longest stretch of down days since 1974.
It looked like the losing streak was going to end yesterday at nine days. But then the Federal Reserve announced its plan to lower the fed-funds rate by 25 basis points (0.25%) and all heck broke loose. The Dow fell more than 1,000 points, which marked its second worst day of the year.
The market expected the 25-basis-point rate cut. But what really got everyone spooked was the Fed’s outlook. In September, the Fed predicted four more 25-basis-point rate cuts in 2025. And as of yesterday, that number dropped to only two rate cuts next year.
This caused stocks to tumble. And it also sent the CBOE Volatility Index (VIX) on one of the biggest one-day moves in years – up 74%.
That was a lot of chaos for one day. And I’m sure some folks are feeling on edge as a result.
So today, I decided to share some charts to show you where we stand and what we need to watch. Hopefully, this video update will help calm your nerves.
Watch today’s video for more below.
Here’s to the future,
Matt McCallEditor, Market Insights
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