Wednesday, July 2, 2025
  • About
  • Write for us
  • Contact
Today News
  • Business
  • Tech
    How to Use Chrome Developer Tools to Teach Math Logic

    How to Use Chrome Developer Tools to Teach Math Logic

    Cybersecurity & VPNs

    How Software, Cybersecurity & VPNs Can Save You Money on Flights – Featuring VPNLY

    Is AI making Lewis Carroll’s Wonderland Weirder?

    Is AI making Lewis Carroll’s Wonderland Weirder?

    Gbyte Recovery

    Gbyte Recovery Review: Can It Restore Deleted iPhone Contacts?

    How to Resolve “Restore Failed” Error in QuickBooks Desktop?

    How to Resolve “Restore Failed” Error in QuickBooks Desktop?

    The Future of Business Transactions: Leveraging Electronic Data Interchange (EDI)

    The Future of Business Transactions: Leveraging Electronic Data Interchange (EDI)

    Tech Trends That Are Reshaping the British Economy in 2025

    Tech Trends That Are Reshaping the British Economy in 2025

    Revolutionary Haptic Technology Transforms Gaming Experience

    Revolutionary Haptic Technology Transforms Gaming Experience

    Gravitational Training Systems: Revolutionary Physics in Sports Science

    Gravitational Training Systems: Revolutionary Physics in Sports Science

  • Consumer
    Craving Connection: Why Food Gifting Is the New Love Language

    Craving Connection: Why Food Gifting Is the New Love Language

    How to Celebrate Milestones from Afar: The Rise of Digital Gifting in the UK

    How to Celebrate Milestones from Afar: The Rise of Digital Gifting in the UK

    How to adjust glasses at home – a step-by-step guide!

    How to adjust glasses at home – a step-by-step guide!

    Why quality toilet cubicle hardware matters

    Why quality toilet cubicle hardware matters

    Common Mistakes in KYC Identity Verification

    Common Mistakes in KYC Identity Verification

    Consumer habits

    British Furniture Market Sees Significant Changes in Consumer Preferences

    Why are high-street bookmakers declining in the UK?

    Why are high-street bookmakers declining in the UK?

    Straps for smartwatches: The Complete guide

    Straps for smartwatches: The Complete guide

    High street retailers are at a “crossroads”, says retail tycoon

    High street retailers are at a “crossroads”, says retail tycoon

  • Finance
    Rejoining Europe: What could it mean for the British economy?

    Rejoining Europe: What could it mean for the British economy?

    Understanding Finance and Why It Matters in Everyday Life

    Understanding Finance and Why It Matters in Everyday Life

    A Simple Guide to Buying Bitcoin for First-Time Investors

    A Simple Guide to Buying Bitcoin for First-Time Investors

    VPS Low Latency: Why It’s Important for Forex Traders

    VPS Low Latency: Why It’s Important for Forex Traders

    How AI Is Reshaping Financial Advising

    How AI Is Reshaping Financial Advising

    How Geopolitical Tensions Affect Forex Trading

    How Geopolitical Tensions Affect Forex Trading

    Steel Prices

    Where Steel Prices Have Been Headed: A Six-Month Look at Global Trends

    UK Online Casino Payments: Why Trustly and Mobile Methods Are Replacing Cards

    UK Online Casino Payments: Why Trustly and Mobile Methods Are Replacing Cards

    Gold Dips as Markets Rebound

    Gold Dips as Markets Rebound

  • Environment
    Choosing the Right Sustainability Partner: How Eco-Efficient Tech Transforms Industry

    Choosing the Right Sustainability Partner: How Eco-Efficient Tech Transforms Industry

    Moving Abroad? Here’s What to Expect – and Why Cardboard and Plastic Waste Removal Is Essential After Unpacking

    Moving Abroad? Here’s What to Expect – and Why Cardboard and Plastic Waste Removal Is Essential After Unpacking

    How Weather Events Like Heavy Rain or Heatwaves Affect Pest Activity

    How Weather Events Like Heavy Rain or Heatwaves Affect Pest Activity

    Building a Carbon-Competitive Advantage with Sustainability and Decarbonization Consulting

    Building a Carbon-Competitive Advantage with Sustainability and Decarbonization Consulting

    The Lost Art of Orienteering: Why Map and Compass Skills Still Matter

    The Lost Art of Orienteering: Why Map and Compass Skills Still Matter

    Sustainability in Dining: Reducing Waste for a More Profitable Future

    Sustainability in Dining: Reducing Waste for a More Profitable Future

    Environmental Benefits

    What Are The Environmental Benefits Of Choosing Eco-friendly Rubbish Removal In Croydon?

    Why You Should Hire Waste collectors for efficient waste removal

    Why You Should Hire Waste collectors for efficient waste removal

    Choosing the Right Floating Dock Platform for Your Aquaculture Cages

    Choosing the Right Floating Dock Platform for Your Aquaculture Cages

  • Property
    Enhancing your home projects with essential hardware selection tips

    Enhancing your home projects with essential hardware selection tips

    5 Best Lifetime Mortgage Providers in the UK

    5 Best Lifetime Mortgage Providers in the UK

    Top 10 Sell House Fast Companies in the UK

    Top 10 Sell House Fast Companies in the UK

    Efficient storage solutions for stress-free home renovations

    Efficient storage solutions for stress-free home renovations

    Chelsea Residences – Exclusive Living in Dubai’s Prime Location

    Chelsea Residences – Exclusive Living in Dubai’s Prime Location

    Insights and Opportunities For Exploring the London Property Market

    Insights and Opportunities For Exploring the London Property Market

    How to Choose the Right Moving Service for Your Needs

    How to Choose the Right Moving Service for Your Needs

    What Should You Do Before Moving House to Avoid Last-Minute Stress?

    What Should You Do Before Moving House to Avoid Last-Minute Stress?

    Choosing the Right Stove for Your UK Home in 2025

    Choosing the Right Stove for Your UK Home in 2025

  • eCommerce
    The Importance of Digital Valuations for UK Ecommerce Brands

    The Importance of Digital Valuations for UK Ecommerce Brands

    Blink-and-Buy: Designing Checkouts That Convert in Under 10 Seconds

    Blink-and-Buy: Designing Checkouts That Convert in Under 10 Seconds

    High Stakes Strategies: Lessons E-commerce Entrepreneurs Can Learn from Casinos

    High Stakes Strategies: Lessons E-commerce Entrepreneurs Can Learn from Casinos

    Amazon Expert

    Amazon Expert: Key Qualifications to Look For

    Boosting Ecommerce Revenue with Smart Targeting Strategies

    Boosting Ecommerce Revenue with Smart Targeting Strategies

    Personalized Shopping: How Technology is Transforming Retail

    Personalized Shopping: How Technology is Transforming Retail

    How Can Ecommerce Businesses Learn From Entertainment Platforms?

    How Can Ecommerce Businesses Learn From Entertainment Platforms?

    Magento Web Development Company: Unlocking the Power of E-Commerce

    Magento Web Development Company: Unlocking the Power of E-Commerce

    eCommerce in 2025: What’s Changing and Why It Matters

    eCommerce in 2025: What’s Changing and Why It Matters

No Result
View All Result
Today News
Home Finance

The Fed Day: A Catalyst for Market Volatility

David Prior by David Prior
December 29, 2024
Reading Time: 3 mins read
The Fed Day: A Catalyst for Market Volatility
443
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

On the evening of December 18th, the stock market experienced a sharp downturn at the end of the trading session following the Federal Reserve’s decision to cut interest rates by a quarter of a percentage point — the third consecutive reduction. However, what truly rattled the markets were the remarks from Fed Chair Jerome Powell, who stated there would be no further cuts until inflation falls back below the 2% threshold.

While the 25-basis-point rate cut was widely expected by analysts, November’s inflation data—released in December—showed a slight increase, with the core component remaining stubbornly above the Fed’s maximum tolerated level. The market reaction was not confined to equities. The Dollar Index also saw increased volatility. Initially, the rate cut put pressure on the dollar, but Powell’s hawkish remarks reversed the trend, pushing the index higher as expectations for future cuts dwindled.

Related posts

Rejoining Europe: What could it mean for the British economy?

Rejoining Europe: What could it mean for the British economy?

July 1, 2025
427
Understanding Finance and Why It Matters in Everyday Life

Understanding Finance and Why It Matters in Everyday Life

June 25, 2025
33

The stronger dollar poses challenges for exporters and multinational companies, as it makes U.S. goods more expensive abroad and reduces the value of foreign earnings when converted back to dollars. This, in turn, weighed on stock valuations, contributing to the S&P 500’s 3% drop during the session. Small-cap stocks, represented by the Russell 2000, suffered even more significant losses, dropping 4.4%, marking the worst “Fed Day” since March 2020, when the central bank implemented an emergency rate cut over a weekend in response to the COVID-19 pandemic.

The market had priced in expectations for 2-3 rate cuts next year, but now it seems there may only be one. With stocks — particularly in the tech sector—trading at high valuations reminiscent of the 2000 dot-com bubble, investors seem eager to sell and lock in profits ahead of the holiday season.

This Fed Day may simply serve as a catalyst, as many investors were likely already planning to close positions to secure gains from this record-breaking year in the stock market. In the short term, it is reasonable to expect the top-performing assets of the year could face the steepest declines.

From a longer-term perspective, the likelihood of just one rate cut next year suggests higher inflation and elevated interest rates for an extended period. This would weigh on stock valuations, increase borrowing costs, and worsen the federal deficit.

The VIX, commonly known as the “fear index,” which gauges implied volatility of S&P 500 options saw a notable spike. While the increase wasn’t as dramatic as the early August sell-off triggered by margin closures on leveraged yen positions, the levels reached remain concerning.

In the weeks ahead, it will become clear whether this Fed Day was merely a trigger for traders to close positions they were already planning to wind down before the holidays or the beginning of a broader market correction heading into early 2025. If the latter is the case, heightened attention should be given to highly volatile assets, including Bitcoin, which could also face significant declines.

David Prior

David Prior is the editor of Today News, responsible for the overall editorial strategy. He is an NCTJ-qualified journalist with over 20 years’ experience, and is also editor of the award-winning hyperlocal news title Altrincham Today. His LinkedIn profile is here.

Previous Post

Chauffeur Service Morocco: Luxury and Convenience at Your Fingertips

Next Post

Viking slots: everything you need to know before playing

Related Posts

Rejoining Europe: What could it mean for the British economy?
Finance

Rejoining Europe: What could it mean for the British economy?

July 1, 2025
427
Understanding Finance and Why It Matters in Everyday Life
Finance

Understanding Finance and Why It Matters in Everyday Life

June 25, 2025
33
A Simple Guide to Buying Bitcoin for First-Time Investors
Finance

A Simple Guide to Buying Bitcoin for First-Time Investors

June 25, 2025
473
VPS Low Latency: Why It’s Important for Forex Traders
Finance

VPS Low Latency: Why It’s Important for Forex Traders

June 25, 2025
377
How AI Is Reshaping Financial Advising
Finance

How AI Is Reshaping Financial Advising

June 19, 2025
32
How Geopolitical Tensions Affect Forex Trading
Finance

How Geopolitical Tensions Affect Forex Trading

June 18, 2025
493
Next Post
Viking slots: everything you need to know before playing

Viking slots: everything you need to know before playing

RECOMMENDED NEWS

Investment Look

The Digital Investor: How Online Courses Are Changing the Game

8 months ago
385
Exploring Cazeus Casino Online Casino Bonuses

Exploring Cazeus Casino Online Casino Bonuses

7 months ago
554
Hybrid Sales Model

Hybrid Sales Model – the Future of the Insurance Industry?

1 year ago
29
Flatbed Trailer

Flatbed Trailer Rental in Toronto Provides Versatile Transport Solutions

2 years ago
449

BROWSE BY CATEGORIES

  • Business
  • Careers
  • Charity
  • Consumer
  • Culture
  • eCommerce
  • Education
  • Energy
  • Engineering
  • Entertainment
  • Entrepreneurs
  • Environment
  • Fashion
  • Finance
  • Food & Drink
  • Gaming
  • Gardening
  • Health
  • Insurance
  • Interiors
  • Legal
  • Leisure
  • Lifestyle
  • Manufacturing
  • Marketing
  • National
  • News
  • Opinion
  • Pets
  • Politics
  • Property
  • Sales
  • Sport
  • Sports
  • Tech
  • Transport
  • Travel
  • Uncategorized

BROWSE BY TOPICS

Agency AI autosmart banking Beauty business Christmas construction cyber security data digital Digital Marketing Services ecommerce entertainmnet finance fitness health inflation insurance kitchen KYND lifestyle manchester music News north overseas Personal Injury Pharmaceutical Industry property Real Estate recruitment Sir Michael Morpurgo Skincare sports technology The Victoria Quarter tourism travel UK vehicles Warkworth village watch workspace yorkshire

Latest news

Nightlife Essentials You Didn’t Know You Needed

Nightlife Essentials You Didn’t Know You Needed

July 1, 2025
The Top 10 European Countries to Retire To in 2025

The Top 10 European Countries to Retire To in 2025

July 1, 2025
Rejoining Europe: What could it mean for the British economy?

Rejoining Europe: What could it mean for the British economy?

July 1, 2025
Avia Masters: A Sky-High Adventure in Online Gaming

Avia Masters: A Sky-High Adventure in Online Gaming

July 1, 2025
Natural Light and Plant

Natural Light and Plant Life: Making Workspaces More Human

July 1, 2025
Farm

Why Every Worksite, Farm, or Side Hustle Needs a Solid Shed

July 1, 2025
4000W Hub

Finding Your Perfect Power: From Smooth 500W Mid-Motors to Extreme 4000W Hub Drives

July 1, 2025
Flourishing Sanctuary

Crocus: Transform Your Garden into a Flourishing Sanctuary of Style and Sustainability

July 1, 2025
Tocotrienols

Why Scientists Are Turning Their Focus to Tocotrienols – and What It Means for Your Health

July 1, 2025
Vacation Club

Understanding Vacation Club Loans: A Complete Guide

July 1, 2025

Today News

  • About
  • Write for us
  • Contact
  • Privacy Policy

@2024 Rooftree Publishing Ltd

Today News in association with Kajino.com

Sign up for our newsletter




  • Business
  • Tech
  • Consumer
  • Finance
  • Environment
  • Property
  • eCommerce

Recent News

Nightlife Essentials You Didn’t Know You Needed

Nightlife Essentials You Didn’t Know You Needed

July 1, 2025
The Top 10 European Countries to Retire To in 2025

The Top 10 European Countries to Retire To in 2025

July 1, 2025
No Result
View All Result
  • Home
  • Business
  • Tech
  • Consumer
  • Finance
  • Environment
  • Property
  • eCommerce
  • Write for us
  • About
  • Contact