US stocks fall sharply after the Fed trims expectations for cuts in 2025

The major US stock indices fell sharply after the Fed signaled less easing in 2025. The end of your target for the Fed funds is now 3.9%. It was a 3.4% after the September meeting.

• The Dow industrial average is now down for 10 consecutive days. It’s decline for today is its worst single day since August 5 when the index fell -2.6%. The fall today was just above that level
• The S&P index fell at its worst day also since August 5 when the index fell -3.0%.
• The NASDAQ index had its worst day since July 24 when the index fell -3.64%

A snapshot of the final numbers shows:

• Dow industrial average fell -1123.46 points or -2.58% at 42326.44
• S&P index fell -178.58 points or -2.95% at 5872.04.
• NASDAQ index fell -716.37 points or -3.56% and 19392.69..

The small-cap Russell 2000 fell 1 or 2.56 points or -4.39% at 2231.51.

After the close Micron Technology EPS came in at $1.79 versus $1.77. Revenues were at $8.7 billion is expected $8.7 billion. Although earnings and revenues came in as expected the stock is getting hit hard and down -16.80%. That comes after its shares fell -4.33% on the day.

Guidance for Q2 was light of expectations with revenues at 7.7 – $8.1 billion versus expected $8.99 billion. Adjusted earnings-per-share expected $1.33– $1.53 versus expected $1.92. The company said they expect to return to growth in second half of the fiscal year.

This article was written by Greg Michalowski at www.forexlive.com.