MANCHESTER, NH—

The stock market plunged on Wednesday, just hours after the Federal Reserve announced a quarter-point interest rate cut.

The Dow fell more than 1,000 points, marking the index’s biggest decline since August.

This is the Dow’s tenth consecutive day of losses, its longest since 1974.

In the fall, the Fed announced that it planned to scale back its efforts to combat inflation.

Rates have been cut three times since then, with officials suggesting Wednesday’s cut could be the last for a while.

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The central bank said it was scaling back expectations for interest rate cuts next year, and investors expected multiple cuts.

Experts said these lower Fed expectations are the reason for the market decline and consumers should benefit from it.

“For people out there who are still saving and still investing in 401(k)s and IRAs, this is actually a great opportunity when you’re seeing declines in the market and investing money into your 401 on a regular basis.” (k) . For example, if you invest your money today, you’ve just invested at a lower level now than you did yesterday or the week before,” said Sean Tole of Davis Wealth Management.

Next year, the Fed forecasts only a half-percentage-point rate cut, followed by another half-percentage-point cut in 2026.