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Sharp decline on the US stock exchange after interest rate decision

The New York stock exchange fell sharply on Wednesday after the central bank Fed signaled fewer interest rate cuts next year.

» Published: December 18 2024

Sharp decline on the US stock exchange after interest rate decision
Photo: Richard Drew/AP/TT

It was cautious on the New York Stock Exchange's leading index ahead of the interest rate decision.

Immediately after the announcement, an expected decrease of 25 points in combination with only two - and not as previously four - interest rate cuts next year, the arrows turned downward and bright green numbers turned red.

The disappointment over the tightened interest rate path was visible across the board.

The technology-heavy Nasdaq composite index was hit the hardest, standing at minus 3.6 percent at closing. The broad S&P 500 index closed at minus 3 percent, while the Dow Jones industrial index fell for the tenth trading day in a row, minus 2.6 percent.

Among the biggest losers were electric car manufacturer Tesla, minus 9 percent, and chip manufacturer Broadcom, minus 8 percent.

In fact, all seven major technology giants, often referred to as "the magnificent seven" - Alphabet (minus 3.5 percent), Amazon (minus 4.6), Apple (minus 2.1), Meta (minus 3.6), Microsoft (minus 3.8), Nvidia (minus 1.1), and Tesla - took a hit.

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By TTThis article has been altered and translated by Sweden Herald

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