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- 🐺WOLF Financial Weekly - Issue #164: Your Gateway to Financial Freedom
🐺WOLF Financial Weekly - Issue #164: Your Gateway to Financial Freedom
Here's our Market Recap for Another Historical Week...
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🚨Top Tweet of the Week!🚨
JEROME POWELL AND THE FED'S PREFERRED INFLATION INDEX JUST RELEASED
🇺🇸 PCE for November just came in at +2.8% YoY below expectations +2.9% YoY (+0.1% below expectations +0.2%) x.com/i/web/status/1…
— Evan (@StockMKTNewz)
1:31 PM • Dec 20, 2024
This Week’s Market Recap… 📊
The Federal Reserve took center stage this week during its final meeting of the year, delivering a widely expected 25 basis point (0.25%) rate cut. This adjustment lowered the federal funds rate to a range of 4.25%–4.50%.
While rate cuts often boost market sentiment, this time the reaction was starkly negative. Wednesday’s sell-off was the steepest since March 2020, driven not by the rate decision itself but by the Fed’s updated Summary of Economic Projections.
The “dot plot” in this report showed a significant shift in outlook: instead of the previously expected four rate cuts in 2025, the Fed now projects only two. This caught markets off guard, leading to a broad sell-off. All major indices tumbled more than 2%, with the S&P 500 and Nasdaq each shedding over 3%, marking one of the most challenging trading days in two years.
The sharp reaction surprised me, especially since many economists and strategists had already anticipated a hawkish tone from the Fed. Yet, this didn’t soften the blow, as rates rose and equities fell.
That said, I see this pullback as potentially constructive for the market. After months of steady gains, a correction like this can recalibrate expectations and set the stage for more sustainable growth. Despite the volatility, I remain optimistic that the market will end the year higher than current levels.
As always, stay focused on your long-term goals, remain invested, and maintain a positive outlook.
Have a great weekend!
My Schedule This Week!
Have a Blessed Weekend!
Disclaimer: Wolf Financial does NOT offer financial advice. All content provided is strictly for informational purposes. Wolf Financial is not registered as an investment, legal, or tax advisor, nor as a broker/dealer. Please be aware that trading any stock or crypto-related asset carries inherent risks and may lead to substantial capital losses.
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