On December 19th, according to Dahe Financial Cube News, on Wednesday Eastern Time, all three major stock indexes in the United States closed down, with the Dow Jones Industrial Average falling 2.58% to 42326.87 points, marking the 10th consecutive day of decline and the longest continuous decline since October 1974; The S&P 500 index fell 2.95% to 5872.16 points; The Nasdaq fell 3.56% to 19392.69 points.
Large tech stocks fell across the board, with Tesla dropping over 8% and its market value evaporating $131.5 billion (approximately RMB 962.5 billion) overnight; Intel fell more than 5%, Amazon fell more than 4%, Google Meta、 Microsoft and Netflix fell over 3%, Apple fell over 2%, and Nvidia fell over 1%.
International precious metal futures closed sharply lower, with COMEX gold futures falling 2.34% to $2599.6 per ounce and COMEX silver futures falling 3.61% to $29.805 per ounce.
In late trading in New York, the US dollar index rose 1.23% to 108.26, while the offshore renminbi fell 367 basis points against the US dollar to 7.3247.
The collective increase in US bond yields. The yield of 2-year US Treasury bonds rose 11.4 basis points to 4.369%, 3-year US Treasury bonds rose 13.3 basis points to 4.367%, 5-year US Treasury bonds rose 14.8 basis points to 4.415%, 10-year US Treasury bonds rose 12 basis points to 4.523%, and 30-year US Treasury bonds rose 9.2 basis points to 4.683%;
On the news front, in the early hours of Thursday Beijing time, the Federal Reserve announced a 25 basis point reduction in the target range of the federal funds rate to 4.25% -4.50%, marking the third rate cut this year. However, it also lowered the possible rate cut for next year, mainly because inflation is still at a high level.
The "dot plot" of interest rate paths released after the meeting shows that there will be two interest rate cuts of 25 basis points each in 2025, while the expectation for September is four interest rate cuts of 25 basis points each.
According to a research report by CITIC Securities, based on SEP and Powell's statements, the Federal Reserve has obvious concerns about inflation next year. The current interest rate meeting is much more hawkish than the market's general expectations. CITIC Securities continues to maintain its view that the Federal Reserve will cut interest rates twice in 2025, and expects that the Federal Reserve will most likely pause its interest rate cut observation at the next meeting, or wait until the March meeting to provide clearer guidance. The volatility of the US stock market is expected to increase.