DJI: Dow Jones Tanks Over 300 Points as Fed Shatters Market Outlook for Early Rate Cuts

Jay Powell pushed back against hopes for a March interest-rate cut saying it was “not the most likely” scenario. Selloff ensued.

• The Dow Jones Industrial Average DJI dropped sharply lower on Wednesday, following the Federal Reserve’s first meeting of 2024. Judging by the 300-point loss for the blue-chip index, investors didn’t get their expectations met as Powell delivered the central bank’s statement.
• No rate cuts are planned for the Fed's next meeting coming in March. That’s the key takeaway and the catalyst for the broad-based selloff yesterday. “I don’t think it’s likely that we’ll reach a level of confidence by the time of the March meeting,” Powell told journalists in a press conference after leaving rates unchanged.
• The Dow Jones was joined in the red by the S&P 500 and the Nasdaq Composite, which lost 1.6% and 2.2%, respectively. On the bright side, stocks were off to a good start of 2024. All three Wall Street benchmarks are up in January, each boasting gains of more than 1%.