LATEST DEVELOPMENTS NOW FROM OUR NEWSROOM. EMILY ED MARIA A HARD DAY FOR THE MARKETS. This came after the Federal Reserve planned just two rate cuts next year, instead of the four that were on the radar. Shares are taking a significant nosedive across the board. The DOW fell 1,100 points, its largest single-day decline so far this year. The Fed says today it will cut its key interest rate for the third time this year. BUT THE BIG QUESTION IS HOW MUCH MORE? The Federal Reserve could cut interest rates next year. OUR FINANCIAL EXPERT EXPLAINS WHAT THIS COULD MEAN FOR YOU. THE MARKETS ARE SOLD OUT TODAY BECAUSE ONE OF THE KEY COMPANIES RESPONSIBLE FOR OUR ECONOMY STATED THAT THEY EXPECT MORE GROWTH. A ROBUST JOB MARKET. You know, things that are fundamentally good for our economy may not be good for stocks in the short term. That’s one of the things that I think we can largely get past. BUT IN PRACTICE IT MEANS THAT IF YOU’RE LOOKING FOR A 6% MORTGAGE RATE, IT’S PROBABLY NOT HAPPENING. At least according to the Fed. According to the Fed, stubborn inflation rates coupled with yet-to-be-determined changes in the economy and uncertainty over a new presidential administration are some of the factors driving calls for slower rate cuts. FED CHAIR JEROME POWELL SAYS TODAY: “When the path is uncertain, you take things a little slower” and says that’s at least their approach

Massachusetts financial advisors react to Dow Jones ending down 1,100 points

Updated: 9:48 p.m. EST, December 18, 2024

U.S. stocks fell to their second-deepest decline of the year on Wednesday as hopes for interest rate cuts in 2025 faded. The Dow Jones closed more than 1,100 points down, marking its longest losing streak since 1974. This came after the Federal Reserve tacked on just two interest rate cuts for next year, rather than the four that were on the radar. The Federal Reserve said it is cutting its key interest rate for the third time this year, but the big question is by how much. “Markets sold off today as one of the major companies said there was more growth, a robust labor market and expect things that are fundamentally good for our economy,” said Mike Armstrong of the Armstrong Advisory Group. “That may not be good for stocks in the short term. That’s one of the things I think we can get past. But in practice, if you’re aiming for a 6% mortgage rate at any time, it probably won’t happen soon, at least according to the Federal Reserve. “The Federal Reserve said stubborn inflation rates combined with yet-to-be-determined changes in the economy and uncertainty over a new presidential administration were some of the factors that led to calls for slow rate cuts. Federal Reserve Chairman Jerome Powell said: “When the path is uncertain, take things a little slower,” and said that is her approach, at least for now.

NEEDHAM, Mass. –

U.S. stocks posted their second-biggest fall of the year on Wednesday as hopes for interest rate cuts in 2025 faded.

The Dow Jones closed down more than 1,100 points, marking its longest losing streak since 1974.

This comes after the Federal Reserve planned just two rate cuts next year, instead of the four that were on the radar.

The Federal Reserve announced it is cutting its key interest rate for the third time this year. The big question, however, is how much more the Federal Reserve could cut next year.

“There was a market sell-off today because one of the biggest companies said it expects more growth, a robust job market and things that are fundamentally good for our economy,” said Mike Armstrong of Armstrong Advisory Group.

“This may not be good for stocks in the short term. That’s one of the things I think we can get past. But in practice it means: If you’re aiming for a 6% mortgage rate soon, that’s probably not going to happen, at least in the Federal Reserve’s opinion.”

The Federal Reserve said stubborn inflation rates combined with yet-to-be-determined changes in the economy and uncertainty over a new presidential administration were some of the factors that led to calls for slower rate cuts.

Federal Reserve Chairman Jerome Powell said: “When the path is uncertain, take things a little slower” and said that was their approach, at least for now.