Dow breaks 10-day losing streak amid market turmoil over Fed rate outlook

The Dow Jones Industrial Average inched up 15 points on Thursday, narrowly breaking its worst 10-day losing streak in 50 years. Meanwhile, the S&P 500 and Nasdaq continued to slip as investors remained cautious following Wednesday’s sell-off triggered by the Federal Reserve’s revised rate cut projections for 2024.

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Bond yields climbed again, with the 10-year Treasury yield reaching 4.572%, while Bitcoin dropped 5% to $96,178 amid broader market concerns. The Fed reduced its expected rate cuts for next year from four to two, with Chair Jerome Powell stressing inflation’s persistence.

Markets now price in a 66% chance of one or two rate cuts in 2024, while the odds of no cuts have increased to 18.5% from 6.6% a week ago. Investors are also eyeing Friday’s PCE report for further direction.