Wall Street Woes: Stocks Dive as Fed's Cautious Projections Stir Investor Anxiety

U.S. stocks experienced significant declines as the Federal Reserve's modest interest rate cut failed to reassure investors. All major indexes fell sharply, with the Dow experiencing its longest losing streak since 1974. Investors are concerned about the Fed's cautious projections and the potential for Trump's policies to increase inflation.

On Wednesday, major U.S. stock indexes suffered their most substantial daily drop in months, as investors reacted negatively to the Federal Reserve's recent interest rate cut. The Fed's projections suggested a cautious approach to future rate cuts, leaving many investors unsettled.

The Dow Jones Industrial Average plummeted by 1,123.03 points, marking its most prolonged losing streak since 1974, as the S&P 500 and Nasdaq Composite also reported significant losses. Despite recent gains in tech stocks and AI-driven optimism, investors remain wary of potential inflationary pressures from the incoming Trump administration.

Adding to market volatility, U.S. Treasury yields rose, and cryptocurrency-related stocks faced sharp declines after Fed Chairman Powell confirmed the central bank's position on bitcoin ownership. The broader market saw a surge in the CBOE Volatility Index, while trading volume hit 18.59 billion shares.

(With inputs from agencies.)