BREAKING NEWS: Dow Plunges 1,100 Points: First 10-Day Losing Streak Since 1974
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Hello and welcome to this breaking news episode. Wanted to do this quick snap after the closing bell on Wednesday the 18th of December because the Dow Jones Industrial Average has just fallen over 1,100 points. In fact, it's the

It's the first 10-day losing streak since 1974. So the US central bank, the Federal Reserve, reduced its overnight borrowing rate by a quarter point to a target range of 4.25% to 4.5%. That was very much as expected.

The big news here was that new quarterly forecasts, so this is the summary of economic projections that comes out every calendar quarter, showed several officials penciled in fewer rate cuts for next year than they anticipated just a few months ago. And they also see inflation making considerably less progress in 2025. They now see their benchmark rate reaching a range of 4%.

3.75% to 4% by the end of 2025, and that implies just two quarter percentage point cuts according to the median estimate. On the question of Trump, Jerome Powell, the Fed chairman, did say that some policymakers had begun to incorporate the potential impact of higher tariffs that Trump may implement, but Powell did say that the impact of such proposals, which at this point remains highly uncertain.

Pretty quick on the tape was analysts at Morgan Stanley. They said, as a good summation, that the Fed's forecasts for 2025 were much more hawkish than anticipated. And as such, the Nasdaq 100 fell 3.6%.

The S&P 500 sank nearly 3%. The two-year Treasury yield rising 0.11 percentage points to 4.35%. And the US dollar jumped more than 1% against a basket of six peers to its highest level since November 2022.

And if you were to break that down further and look at some of the individual stocks, Tesla, a big casualty. They've been on a tear in Q4. They fell over 8% by the close. The other major cap tech stocks, Amazon down nearly 5%, Google down 3.5%, Microsoft down 3.75%.

In terms of what the market is expecting going forward now, the next rate cut was priced in for March 2025. But following what's just happened, that's now been pushed back in the short term interest rate futures market to now June 2025 meeting.

So, so much for a Santa rally. A hawkish surprise to finish the year from the Fed has resulted in Wednesday's decline being the worst since August and only the second time it lost 1,000 points this year in one single session.

So I wish I had better, more cheerful news for you, but wanted to bring that exclusive breaking update to the podcast when you finish your day or wake up tomorrow morning. Don't forget to also check out our outlook for the year ahead dropping in the coming days. If you're looking for flexible workouts, Peloton's got you covered. Summer runs or playoff season meditations. Whatever your vibe, Peloton has thousands of classes built to push you.

We know how life goes. New father, new routines, new locations. What matters is that you have something there to adapt with you, whether you need a challenge or rest. And Peloton has everything you need whenever you need it. Find your push. Find your power. Peloton. Visit onepeloton.com.

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