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📉 What's Next After Powell’s Rate Cut Warning Sends Markets Spiraling
Plus, take a look at what corporate execs are buying, and more
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Happy Thursday! Fed Chair Jerome Powell surprised markets after a rate cut, signaling a slower and more deliberate pace of easing in 2025. Stocks and cryptos fell sharply as Powell projected fewer cuts next year and emphasized the Fed’s cautious approach. Here’s how this shift could reshape the market outlook. Elsewhere, certain corporate executives are buying their own stock, suggesting potential opportunities.
—Josh Enomoto
Plus, if you’re looking to invest in a potentially groundbreaking dementia drug, check out today’s sponsor.
MARKET RECAP
Yesterday: Stocks fell sharply Wednesday as the Fed cut rates but signaled fewer cuts ahead, pushing bond yields to a six-month high of 4.51%. Consumer discretionary and real estate stocks led the losses, while the dollar gained on the prospect of elevated U.S. rates.
On Our Radar: After assessing the initial jobless claims report from earlier this morning, investors will turn to existing home sales for further clues about economic health. For corporate financials, FedEx will reveal its quarterly results after today’s closing bell.
TOP STORY
The Fed cut rates again but hinted at a more cautious approach for 2025, signaling slower progress on inflation and fewer rate cuts ahead. Markets reacted sharply, with both stocks and cryptos taking a hit as investors recalibrated expectations.
SPONSORED CONTENT
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FIVE ZINGERS
Token Trouble: Former BitMEX CEO Arthur Hayes recently warned that Trump's upcoming inauguration could result in a "harrowing dump" in cryptocurrency markets. Here's why the expert is worried about a potential sell-off.
Ad Bonanza: According to Emarketer estimates, Meta's Instagram app commands the potential to generate half of the social media giant's ad revenue in the U.S. Discover why one geopolitical event could catapult the platform's growth.
Playing Politics: Cloud-based analytics and AI specialist Databricks has been witnessing significant growth and investor backing, including Nvidia, Cathie Wood and U.S. Rep. Nancy Pelosi. Still, read why the company is in no hurry to launch an IPO.
Intel Boost: Wall Street analysts are enthused with Salesforce's second-gen Agentforce technology, which is capable of tackling questions in the company's Slack communications app. Learn what else the experts are raving about.
Bad Date: JPMorgan analyst Cory Carpenter downgraded Match Group to Neutral while also lowering the price target to $33. Although Match is the leading online dating platform, the company's Tinder app failed to meet growth expectations.
SPECIAL OFFER
Editor’s Note: Every Thursday, Benzinga Edge members receive the C-Suite Buy of the Week, a report by Tim Melvin detailing the insider buying that, unlike most, is actually worth paying attention to. Here’s a sneak peek at last week’s:
I admit it: I am something of a geek.
I spend a lot of time sitting around reading articles, crunching numbers, and engaging in other research-focused activities.
One of my favorite ways to spend an afternoon is with a game in the background (preferably baseball, but there has to be an offseason), reading the latest academic studies and insights.
Recently, I spent some time with a study on insider buying titled “Are CFOs’ Trades More Informative Than CEOs’ Trades?”
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