Index Drops as Fed Cuts Rates but Signals Caution | Global News Avenue

Major U.S. stock indexes plunged as the Federal Reserve wrapped up its final policy meeting of the year. this The central bank lowered As expected, the benchmark interest rate was cut by a quarter of a percentage point, but policymakers said persistent inflation may require more restrained policy in 2025.

After trading higher throughout most of the day, the S&P 500 ended 3% lower after changing course following the rate cut announcement and Fed Chairman Jerome Powell’s remarks to the media. The Dow closed down 2.6%, extending its losing streak to double digits for the first time in 40 years. The Nasdaq fell 3.6% as worries about the outlook for interest rates weighed on the technology sector.

Shares of HR services provider Paycom Software (PAYC) fell 10.1% on Wednesday, the largest decline among S&P 500 stocks. Concerns about cannibalization have weighed on Paycom stock over the past year, with reports that the efficiency of its Beti automated payroll solution cannibalized demand for other products and services. Although analysts at Mizuho and Stifel recently raised their price targets on Paycom stock, both companies’ forecasts are still below the current share price.

Tesla (Tesla) shares fell 8.3%, down from Record highs have been reached in recent trading days This follows upgrades by multiple research firms. Analysts have touted a tailwind for the electric car company’s self-driving and artificial intelligence plans under the incoming presidential administration. Tesla shares pulled back on Wednesday following reports that CEO Elon Musk and his SpaceX business are under federal scrutiny related to national security concerns.

BXP stock (BXP),one Real Estate Investment Trust (REIT) Focusing on high-end office properties, it fell 7.6%. While metrics for the company’s East Coast and CBD markets improved, West Coast and suburban markets continued to underperform, pointing to an uneven recovery in office real estate, which has a negative impact on the REIT, which owns workplace properties in different geographies. The fund presents a challenge portfolio.

Following a string of gains that propelled the semiconductor maker beyond Market capitalization exceeds trillion dollar milestoneBroadcom (AVGO) shares fell for the second day in a row, down 6.9%. While Broadcom’s AI-driven earnings growth and positive outlook have encouraged numerous research firms to raise their price targets, the recent rally has put the stock above analysts’ average forecasts, suggesting the stock may be fully valued at current levels.

The best performer on the S&P 500 on Wednesday was shares of circuit board maker Jabil (JBL), soaring 7.3%. apple(AAPL) supplier Sales and profit forecasts top It forecast results for the first quarter of fiscal 2025 and raised its full-year guidance, pointing to strong demand for its cloud, data center infrastructure and digital commerce products. Jabil Announcement of restructuring plan That included layoffs and other cost-cutting measures and adjustments to its manufacturing capabilities earlier this year.

Shares of several health care companies rebounded higher on Wednesday, recouping some of the heavy losses they suffered in recent sessions amid political headwinds. Pharmacy Benefit Management (PBM) Business gathers power. While the industry has been subject to bipartisan criticism and may need to shift its business model, analysts say growth prospects remain healthy. Cigna (CI) the stock price rebounded 6.3%. UnitedHealth stock (united nations institutes of health), hundreds (CNC system) and CVS Health (CVS) also regained lost ground.