Panic rocked the stock market within minutes late Wednesday after the Federal Reserve said it expects fewer interest rate cuts next year.

The Dow Jones Industrial Average fell about 1,100 points, or 2.5%, marking its 10th straight day of losses. The SThe &P 500 plunged nearly 3%, the index’s biggest decline since 2001, following a Fed meeting, according to data shared with ABC News by Deutsche Bank Research.

A year-long market rally suddenly appeared to be unraveling, raising a crucial question: Is this a blip on the path to further gains or a sign of even worse losses to come?

Experts who spoke to ABC News called the selloff an omen of turbulent days ahead, pointing to a potentially prolonged period of high interest rates as well as uncertainty about the U.S. economy under President-elect Donald Trump.

Despite this uncertainty, experts told ABC News that the economy remains on solid footing and the positive outlook for medium- and long-term gains remains.

“We’re used to the market going straight up for so many months, and there’s going to be more volatility from here,” said Ed Yardeni, president of market advisory firm Yardeni Research and former chief investment strategist at Deutsche’s U.S. equity division Bank said ABC News.

Still, he added, “The reality is that the economy is doing well, which is optimistic.”

In fact, the stock market appeared to be recovering in early trading on Thursday, recouping some of the previous day’s losses. The Dow climbed about 250 points, or 0.6%, while the S&P 500 rose 0.7%. The Nasdaq gained almost 1%.

The Fed announcement Wednesday afternoon, which set off alarms on Wall Street, included news that the central bank had cut interest rates by a quarter of a percentage point, but also a new forecast that called for fewer rate cuts than expected just a few months ago: just half Percentage point rate cuts of one percentage point next year and another half percent cut in 2026.

Lower interest rates generally stimulate long-term economic activity, ensure continued economic growth and secure the labor market. They also tend to drive up corporate profits and stock prices. In theory, a longer-than-expected period of high interest rates could reduce these returns.

“The market threw a tantrum,” Ivan Feinseth, market analyst at Tigress Financial, said in a statement to ABC News.

Investors reacted not only to the tapering of interest rate cuts, but also to the reasons behind Fed Chairman Jerome Powell’s decision, experts said.

Powell said stubborn inflation had influenced the Fed’s expectations and noted that some policymakers were also factoring in uncertainty surrounding possible policy changes under Trump.

“Common sense suggests that you slow down a little when the path is uncertain,” Powell said. “It’s no different than driving on a foggy night or walking around in a dark room full of furniture.”

Some economists expect Trump’s proposals for higher tariffs and mass deportations of illegal immigrants to push up consumer prices.

“It will not be a reprieve for Trump 2.0,” Yardeni said, citing the uncertain fate of a budget bill currently on Capitol Hill that, if passed, would prevent a government shutdown. “We can already see the chaos with the circus in Washington, DC.”

Still, three experts speaking to ABC News described the recent decline in stock prices as an opportunity for investors and also highlighted the continued strength of the U.S. economy.

“Given that we’ve only had individual investors on this Fed path for the past few years, this selloff is just another buying opportunity,” said Dan Ives, managing director of equity research at investment firm Wedbush, which focuses on the technology industry. ABC News said in a statement.

Overall, indicators show that the economy is growing at a solid pace while the unemployment rate remains historically low.

“I feel very good about where the economy is,” Powell said Wednesday.

Bret Kenwell, a US investment analyst at eToro, told ABC News that the outlook for the stock market remains positive due to robust corporate earnings and robust economic performance.

“While the market may be vulnerable to short-term weakness, the long-term fundamental catalysts of the bull market remain in place,” Kenwell said.