Stock market today: Dow slumps 1100+ points as Fed's hawkish outlook downs stocks

Investing.com -- The Dow slumped more than 1100 points Wednesday,  after Federal Reserve delivered a quarter-point rate cut, but halved the number of cuts expected for next year, sending Treasury yields higher and triggering a sea of red across stocks.

At 4:00 p.m. ET (21:00 GMT), the Dow Jones Futures fell 2.6%, or 1123 points, the S&P 500 fell 3% and the Nasdaq 100 Futures slipped 3.6%.  Fed halves rate-cut outlook for 2025

The Fed cut interest rates by 25 basis points on Wednesday, but halved the number of rate cuts expected for next year on concerns about a longer-than-expected journey to bring inflation down toward the 2% target. 

Fed members now see the benchmark rate falling to 3.9% for next year, suggesting just two rate cuts, compared with a prior forecast in September for four cuts. 

Treasury yields jumped following the news, with the 2-year Treasury trading surging 11 basis points to 4.346%.  Nvidia rebound fades after sharp reversal; Jabil jumps; General Mills stumbles

NVIDIA Corporation (NASDAQ:NVDA ) cut its intraday gains to en 1% lower following the broader market slump. The chipmaker fell deeper into correction territory on Tursday following its 10% plunge from a recent peak.

Tesla Inc (NASDAQ:TSLA ), meanwhile, halted its impressive run with a 8% slump.  

Jabil Circuit Inc (NYSE:JBL ) was in rally mode, surging 7% after reporting stronger-than-expected fiscal first quarter results and guidance.

Elsewhere on the earnings front, Birkenstock Holding ltd (NYSE:BIRK ) reported Q4 results that topped Wall Street estimates, sending its shares more than 2% higher.

General Mills Inc (NYSE:GIS ) stumbled after cutting its annual outlook on earnings as ramp up in promotional activity dented margins. 

Source: Investing.com