Dow tumbles 900 points as Fed rate outlook disappoints, heads for first 10-day losing streak since ’

[mystery-ak]

Updated Wed, Dec 18 20243:43 PM EST

Dow tumbles 900 points as Fed rate outlook disappoints, heads for first 10-day losing streak since ’74:
Brian Evans
Lisa Kailai Han

The Dow Jones Industrial Average

sank deeper into the history books on Wednesday, with the storied index on track for its 10th straight losing day following a disappointing rate outlook by the Federal Reserve.

The Dow lost 960 points, or 2.2%, on track for its worst losing streak since an 11-day slide in 1974. The 30-stock average posted a nine-day losing streak on Tuesday, its longest since 1978. The S&P 500
lost 2% and the Nasdaq Composite

shed nearly 4%.

The central bank reduced its overnight borrowing rate by a quarter point to a target range of 4.25% to 4.5%, as expected. However, the Fed indicated it would only cut rates twice in 2025, fewer than the four cuts given in its last forecast. Fed Chair Jerome Powell said the central bank’s move to cut rates in recent months allows it to “be more cautious as we consider more adjustments to our policy rate.”

The odds of a rate cut at the Fed’s next meeting in January fell to just 11%, according to fed funds futures trading via the CME FedWatch tool. Before Wednesday, traders were hoping the Fed would stay aggressive with rate cuts in 2025, fueling the bull market further. Treasury yields jumped following the Fed’s cautious outlook, pressuring share prices.

more
https://www.cnbc.com/2024/12/17/stock-market-today-live-updates.html

[ChemEngrMBA]

On December 5, I purchased several thousand shares of SUPV.
It is up over 35% in less than one month.  Investors and retirees should talk here about optimal investment strategies that benefit anyone reading and utilizing the advice.  One of the most critical metrics I use is P/E or price to earnings ratio.
That is how many dollars you pay per share of stock per dollar of that share's latest yearly earnings.
Don't stray far from that or you increase your risk dramatically.  I prefer 10 to 15.  Any lower, especially single digits, probably indicates a company in trouble.
Also look at the trend, or "technicals".  Ride it going up and when it gets peaky like Mount Everest, take your profits.
Attached is a graph of FSELX, formerly named Fidelity Select Electronics when I purchased it around 1997.   Note the Mount Everest in 2020.
I sold when that peak was $121.  It has since split many times, but it took about eighteen years to recover from the tumble.  You do NOT want to wait 18 years to get your money back.

[ChemEngrMBA]

My previous post was amended with an attached graph and explanation of it.  Be sure to read that to understand how important it can be to get out while you're ahead.