Dow Jones sheds over 1000 pts; Nasdaq declines 3.5% post Fed meeting

US stock indexes widened losses on Wednesday as treasury yields increased amid disappointing forecasts of interest rates, though policy makers slashed borrowing rates for the third straights session.

The Dow Jones Industrial Average edged down 2.6%, or 1,123 points, to 42,326 points, as the industrial index extended losses for the tenth straight session; the biggest since an 11-day decline in 1974.

Meanwhile, the S&P 500 Index decreased 2.95%, or 178 points, to 5,872 points, and the Nasdaq Composite retreated about 3.55%, or 716 points, to 19,392 points.

As for the European indices, STOXX Europe 600 advanced 0.15% to 514.43 points.

As FTSE 100 and DAX 40 remained unchanged at 8,199 points and 20,242 points respectively, CAC 40 added 0.25% to 7,384 points.

In Japan, Nikkei 225 advanced 0.7% to 39,081 points. TOPIX fell 0.3% to 2,719 points.

In the oil market, futures contracts for Brent crude for February 2025 delivery rose 0.25%, or $0.20 at $73.39 per barrel.

Meanwhile, prices of West Texas Intermediate (WTI) crude oil for January delivery advanced 0.70%, or $0.50 to $70.58 per barrel.

As for gold, futures prices for the yellow metal for February delivery inched down 0.3%, or $7.9 to $2,653 per ounce.

The Federal Reserve lowered interest rates by a quarter point to 4.25% and 4.5%, as expected. However, it indicated that borrowing costs will only be reduced twice in 2025, lower than the four policy cuts outlined in its previous forecasts.

Federal Reserve Chairman Jerome Powell stated that the recent rate cuts by policymakers allow them to be more cautious when considering further adjustments to monetary policy.