Stocks tumbled on Thursday as chances of a December rate cut appeared to fade.<\/p>\n
The S&P 500 ended down 1.6%, the Nasdaq Composite closed lower by 2.3%, and the Russell 2000 dropped 2.9%. The Dow Jones Industrial Average also fell by 797 points after hitting a record high on Wednesday. <\/p>\n
The tech sector was one of the worst impacted with shares of Dell Technologies falling 4.8% as Nvidia tumbled 3.8% and Palantir slid 6.5%. <\/p>\n
The Dow, S&P and Nasdaq are still up double-digit percentage points for the year, while the Russell, which tracks smaller companies, has increased nearly 7% in 2025. <\/p>\n
Traders are currently betting on a less than 50% chance<\/a> of a rate cut at the Fed\u2019s next meeting, down from more than 90% just two weeks ago, before Federal Reserve Chair Jerome Powell surprised markets on Oct. 29 by saying that \u201ca further reduction in the policy rate at the December meeting is not a foregone conclusion.\u201d<\/p>\n In recent days, Fed officials have sounded split regarding interest in another rate reduction.<\/p>\n Fed governors Lisa Cook and Philip Jefferson, as well as regional presidents Alberto Musalem and Austan Goolsbee, have sounded a cautious tone, indicating they may be more inclined to vote for a pause in rate cuts. It could also indicate that if they do decide a cut is the right decision, it might be a small, quarter-point decrease.<\/p>\n Additionally, Boston Fed President Susan Collins and Kansas City Fed President Jeffrey Schmid have made comments that indicate they would be highly likely to vote for a pause.<\/p>\n