Stocks slide after U.S. Fed decision
Wednesday stocks were in a holding pattern until U.S. Fed chief, Jerome Powell, announced mid-afternoon an expected 25-basis point cut to the key interest rate. However, his announcements during the press conference triggered a steep sell-off in both New York and Toronto. Powell stated that the central bank would cut rates only twice in 2025, instead of the previously announced four times, and at 25 basis points each, due to higher-than-expected inflation.
The S&P plunged 2.95% to close below 6,000 while the Nasdaq slid more than 600 points or 3.56% to settle below 20,000. The Dow sank over 1,000 points or 2.58%. Rallying just earlier this week, the most active names all slid: Tesla -7.56%, Palantir -3.63%, Intel -4.89% and Broadcom -6.6%. Nvidia barely managed to see green while battered UnitedHealth was the only Dow stock to see gains, up 3%. Bitcoin was not immune, as it sank 5.4% or US$5,700 to US$100,670. The U.S. 10-year yield jumped to 4.508%.
All sectors of the TSX were the red, led by tech, materials and healthcare as the Canadian index slid 2.35% or nearly 600 points. Most active were CNQ -2.19%, Suncor -2.01% and Enbridge -1.27% while Shopify closed the day -7.33% and Brookfield Asset Management -6.19%. WTI held at US$70 while gold declined US$55 to US$2,591.
🚗 Tesla Inc (TSLA-Q) -7.56%
💾 Palantir Technologies (PLTR-N) -3.63%
💾 Intel (INTC-Q) -4.89%
🧬 Broadcom (AVGO-Q) -6.6%
👨⚕️ UnitedHealth Group Inc (UNH-N) +3%
🅱 Bitcoin (BTCUSD) (CRYPTO:BTC) -5.4%
🛢 Canadian Natural Rsrcs (CNQ-T) -2.19%
🛢 Suncor Energy Inc (SU-T) -2.01%
🛢 Enbridge (ENB-T) -1.27%
🛍 Shopify Inc. (SHOP-T) -7.33%
🏛 Brookfield Asset Management Inc. (BAM-N) -6.19%
