{"id":2130198,"date":"2023-12-20T18:11:03","date_gmt":"2023-12-20T23:11:03","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wall-street-tumbles-to-sharply-lower-close-as-abrupt-sell-off-snaps-rally\/"},"modified":"2023-12-20T18:13:59","modified_gmt":"2023-12-20T23:13:59","slug":"wall-street-tumbles-to-sharply-lower-close-as-abrupt-sell-off-snaps-rally","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wall-street-tumbles-to-sharply-lower-close-as-abrupt-sell-off-snaps-rally\/","title":{"rendered":"Wall Street plunges, snapping rally"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">10<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fwall-street-tumbles-to-sharply-lower-close-as-abrupt-sell-off-snaps-rally%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2130198&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p><!DOCTYPE html PUBLIC \"-\/\/W3C\/\/DTD HTML 4.0 Transitional\/\/EN\" \"http:\/\/www.w3.org\/TR\/REC-html40\/loose.dtd\"><br \/>\n<?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><html><body><\/p>\n<div class=\"entry-content\">\n<p><strong>December 20, \u20622023 \u2013 1:30 PM PST<\/strong><\/p>\n<p><strong>NEW\u200c YORK\u2064 (Reuters) \u2013 U.S. stocks closed lower on \u200cWednesday after\u200d an abrupt mid-afternoon nosedive ended Wall Street\u2019s impressive rally, which had been driven by falling interest rates and the Federal \u2062Reserve\u2019s dovish turn.<\/strong><\/p>\n<div id=\"div-gpt-ad-1663871513696-art-3\" style=\"min-width: 320px; min-height: 50px; text-align: center;\">  \t<script>  \t\tgoogletag.cmd.push(function() { googletag.display('div-gpt-ad-1663871513696-art-3'); });  \t<\/script>  <\/div>\n<div class=\"ad-slot__ad-label\">Advertisement<\/div>\n<\/p>\n<p>All three major U.S. stock indexes began to\u2063 veer lower around 2:30 p.m. EST, and ended \u200dthe session 1.3% to 1.5% below Tuesday\u2019s close.<\/p>\n<p>Stocks were \u201cnear all time highs,\u200b they hit resistance,\u201d Jay Hatfield, portfolio manager at InfraCap in New York, noting the \u2064downturn was \u201csurprisingly vociferous, things \u2064went \u200cfrom hot to cold real fast.\u201d<\/p>\n<p>\u201cIt\u2019s surprising how aggressive the sell-off is, but it makes sense considering \u200dhow \u2062far we\u2019ve come,\u201d Hatfield added.<\/p>\n<p>Some traders said the selloff could have been aggravated by large purchases of near-term put options on the\u200b S&#038;P 500, including put contracts that would guard against\u200b a drop below\u2063 the 4,755 level on the index by the\u200b end of the session.<\/p>\n<p>Put \u2064options convey the right to \u2063sell shares at a fixed price in the future and \u200cat times options-linked hedging \u200cactivity \u2062can heighten volatility.<\/p>\n<p>During the session, the\u200b S&#038;P 500 got within 0.5% of its all-time closing high. Reaching a new closing \u200bhigh would have confirmed the benchmark\u2063 index had been in a bull market since closing at\u2064 the bear market \u2064floor \u200cin October\u200b 2022.<\/p>\n<p>The index is now more than 2.0% below its record \u200cclosing high.<\/p>\n<p>\u201cWe\u2019ve \u2064had this aggressive rally in \u2064December and investor sentiment is high, it went from bearish to bullish in almost record time,\u201d said Thomas Martin, Senior Portfolio Manager at \u200cGLOBALT in Atlanta. \u201cSo the markets are asking \u2018now what?&#8217;\u201d<\/p>\n<p>At the conclusion of its policy\u200b meeting last Wednesday, the Federal\u200c Open\u2063 Market Committee \u2063signaled that it had reached the end of\u2062 its tightening cycle and opened the door to\u200b rate cuts in the\u2062 coming year.<\/p>\n<p>Chicago Fed President Austan \u2064Goolsbee late Tuesday\u200b reiterated that the rate at which inflation cools to the Fed\u2019s annual 2% target will drive policy on\u200d rate \u2064reduction.<\/p>\n<p>At \u200blast glance, financial markets were \u2064pricing in a 71.1% likelihood\u200b of that first cut arriving as soon as March, according to CME\u2019s FedWatch\u2063 tool.<\/p>\n<p>On the economic front, bigger than expected jump in U.S. consumer confidence and a surprise increase in existing home sales helped turn the major indexes\u200b green.<\/p>\n<p>The Commerce Department is expected to wrap up the week with its third and final take on third-quarter GDP on Thursday, \u200bto be followed on \u2062Friday by its wide-ranging Personal Consumption\u2062 Expenditures (PCE) report, which will cover income growth, consumer spending and, crucially, inflation.<\/p>\n<p>The Dow Jones Industrial \u200cAverage (.DJI) fell\u200b 475.92 \u200cpoints, or 1.27%, to 37,082,\u200c the S&#038;P 500 (.SPX) lost 70.02 points, or 1.47%, to \u200d4,698.35 \u2063and the Nasdaq\u200c Composite (.IXIC) dropped\u2064 225.28 \u2063points, or 1.5%,\u200c to \u200d14,777.94.<\/p>\n<p>All 11 major\u200b sectors \u2063in the S&#038;P 500\u2063 closed in the red, with consumer \u200bstaples \u2062(.SPLRCS) suffering the steepest percentage decline after packaged food \u2063company General Mills(GIS.N) cut its sales forecast.<\/p>\n<p>FedEx (FDX.N) slid 12.1% after the \u2063package deliver missed quarterly profit estimates and cut its\u2064 <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/indexes-drop-as-walmart-profit-warning-spooks-investors\/\" title=\"Indexes drop as Walmart profit warning spooks investors\">full-year revenue forecast<\/a>.<\/p>\n<p>FedEx rival United Parcel \u200bService (UPS.N) dipped 2.9%.<\/p>\n<p>Alphabet gained 1.2% \u200cafter the company announced\u2063 it was restructuring Google\u2019s ad sales unit.<\/p>\n<p>Management consulting firm Aon (AON.N) tumbled6.0% following \u2063its announcement that it would buy \u200bprivately held insurance broker NFP in a $13.4 billion \u2063deal.<\/p>\n<p>Declining issues outnumbered advancing ones on the NYSE by a 2.64-to-1\u200c ratio; on Nasdaq, \u200ba 2.26-to-1 ratio favored decliners.<\/p>\n<p>The \u2062S&#038;P 500 posted 36 new 52-week highs and 1 new lows; the Nasdaq Composite\u200d recorded 210 new highs and 89 new lows.<\/p>\n<p>Volume on U.S. exchanges was 12.84 billion \u200dshares, compared with the 12.15 billion \u2062average for the full\u2064 session over\u2063 the last 20 trading days.<\/p>\n<p><sup>Reporting by Stephen Culp; Additional reporting by Saqib\u2063 Ahmed in New York, Johann M Cherian and Shristi Achar A in Bengaluru; Editing by David Gregorio<\/sup><\/p>\n<\/p>\n<div id=\"rc-widget-10bad2\" data-rc-widget data-widget-host=\"habitat\" data-endpoint=\"\/\/trends.revcontent.com\" data-widget-id=\"278641\"><\/div>\n<p class=\"dpsp-share-text\" style=\"margin-bottom:10px\"> \t\t<strong>Share this\u200d post!<\/strong>\t<\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><strong>Colorado\u2019s Democrat\u200c Supreme \u200dCourt \u2062rules that \u2064Donald Trump, Biden\u2019s biggest political challenger, engaged in insurrection on January 6th.<\/strong><\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><strong>Five Arizona\u2064 children are confirmed dead \u200dafter a devastating house fire. Here\u2019s one America\u2019s Makenna Blackman \u200dwith the latest on the story.<\/strong><\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><strong>Democrats in Colorado take the radical step of removing 45th President Donald Trump\u200b from the ballot in the state.<\/strong><\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><strong>As the Senate continues to\u200b negotiate an <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/biden-administration-grants-temporary-protected-status-to-immigrants-from-cameroon\/\" title=\"Biden Administration Grants Temporary Protected Status to Immigrants from Cameroon\">immigration reform package<\/a>, new House Freedom Caucus \u2064Chairman and Representative\u2064 Bob Good explains what would have to be in the \u200bSenate\u2019s bill for the legislation to pass \u200cthe House.<\/strong><\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><strong>A group of 11 nonfiction authors have joined\u2062 a \u2063lawsuit in Manhattan federal court that accuses OpenAI and Microsoft of misusing books the authors \u200dhave written to train their models.<\/strong><\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><strong>San Francisco police Sergeant David Radford contacted Tesla about data\u2063 on an alleged stalker\u2019s remote access to a vehicle.<\/strong><\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><strong>Google will pay $700 million and revamp its Play app store to allow for\u2064 greater \u2064competition \u200cas part of\u200d an antitrust settlement with U.S.\u200c states and consumers.<\/strong><\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><strong>Apple \u2064said it would pause sales of the smartwatches as it deals with a patent dispute over the technology that enables the blood oxygen feature\u200c on the devices.<\/strong><\/p>\n<\/p><\/div>\n<p> \u200b rnrn  <\/p>\n<h2> What caused the mid-afternoon nosedive in U.S. stocks, ending the impressive rally?<\/h2>\n<p><span>  U.S. Stocks Close Lower After\u2064 Mid-Afternoon Nosedive Ends Impressive Rally<\/p>\n<p>December\u200d 20, 2023 \u2013 1:30 PM PST<\/p>\n<p>NEW YORK\u200c (Reuters) \u2013 U.S. stocks closed lower on Wednesday after an abrupt mid-afternoon nosedive ended Wall Street&#8217;s impressive rally, which had been driven by falling interest rates and the \u2062Federal Reserve&#8217;s dovish turn.<\/p>\n<p>All \u200cthree major U.S. stock indexes began to veer lower around 2:30 p.m. EST and ended the session 1.3% to 1.5%\u200c below Tuesday&#8217;s close. The downturn\u2064 was &#8220;surprisingly vociferous, things went from hot \u2062to cold real \u200bfast,&#8221; said \u200dJay Hatfield, the portfolio manager \u2064at \u2064InfraCap in New \u2063York.<\/p>\n<p>&#8220;It&#8217;s surprising how \u200daggressive the sell-off is, but it\u200b makes sense considering \u2062how far\u200b we&#8217;ve come,&#8221; Hatfield added.<\/p>\n<p>Some traders suggested that the selloff could have \u200bbeen aggravated by large purchases \u2062of near-term put options on the S&#038;P\u2064 500, including put contracts that would guard against a drop below the 4,755 level on the index by the end of the session. Put options convey the right \u200bto sell shares at a fixed price in the future and can heighten volatility.<\/p>\n<p>During the session, the S&#038;P 500 got within 0.5% of its \u2063all-time closing high. \u200cReaching a new \u200bclosing high would have confirmed that the benchmark index had been in a bull market since closing at the bear market floor in October \u200c2022. However, the\u200d index is now more \u2063than 2.0% below its record closing high.<\/p>\n<p>&#8220;At this \u200bpoint, investor \u200csentiment is high, and the markets are asking &#8216;now what?'&#8221; said Thomas Martin, Senior Portfolio Manager at GLOBALT in Atlanta.<\/p>\n<p>The Federal\u200d Open Market Committee signaled at the conclusion of its policy meeting last Wednesday that it had reached the end of its tightening cycle and opened the door to rate cuts \u2064in the coming year. According to CME&#8217;s FedWatch tool, financial markets were pricing\u2062 in a 71.1% likelihood of the first rate cut arriving as soon as March.<\/p>\n<p>On the economic front, a bigger than expected\u2062 jump\u2064 in U.S. consumer confidence and a surprise increase in existing home sales helped turn the major\u200b indexes green.<\/p>\n<p>Looking ahead, \u2063the Commerce Department is\u200c expected to\u200b release its third and final take on third-quarter\u200b GDP on Thursday, followed by its wide-ranging Personal\u2062 Consumption Expenditures (PCE) report on Friday, which will cover income growth, consumer spending, and inflation.<\/p>\n<p>In \u2063Tuesday&#8217;s trading, the Dow \u2063Jones Industrial Average\u200d fell 475.92 points, or 1.27%,\u2062 to 37,082. The \u2062S&#038;P 500 lost 70.02 points, or 1.47%, to 4,698.35, and the Nasdaq Composite dropped 225.28 points,\u2064 or 1.5%, to 14,777.94.<\/p>\n<p>All 11 major sectors in \u200dthe S&#038;P 500\u2063 closed in the red, with consumer staples suffering the steepest percentage decline after packaged food company General Mills cut its \u2062sales forecast. FedEx slid \u206312.1% after the package delivery company\u2063 missed quarterly profit\u200b estimates and cut its full-year revenue forecast. \u200dAlphabet\u2063 gained 1.2% after the company\u200c announced that\u200d it was restructuring\u200d Google&#8217;s ad sales unit. Management consulting firm Aon \u200btumbled 6.0% following its announcement that it would buy privately-held \u2062insurance broker NFP\u200b in a\u2062 $13.4 billion\u2064 deal.<\/p>\n<p>Declining issues outnumbered \u2064advancing ones on the \u2062NYSE by \u2064a 2.64-to-1 ratio, \u200bwhile on Nasdaq, a 2.26-to-1 ratio favored \u2063decliners.<\/p>\n<p>In \u200cterms of volume, 12.84 billion shares were traded\u200c on U.S. exchanges, compared with the 12.15 billion average for\u200c the full session over the last 20 trading days.<\/p>\n<p>Reporting by Stephen Culp; Additional reporting by\u200d Saqib Ahmed in New York, Johann M \u200cCherian \u200band\u200c Shristi Achar A in Bengaluru; Editing by David Gregorio.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>U.S. stocks closed lower on Wednesday, ending Wall Street&#8217;s rally, as falling interest rates and the Federal Reserve&#8217;s dovish turn lost momentum. The abrupt mid-afternoon nosedive caused all three major U.S. stock indexes to veer lower around 2:30 p.m. PST<\/p>\n","protected":false},"author":1911,"featured_media":2130199,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[542],"tags":[],"class_list":["post-2130198","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-oann"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2130198","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1911"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2130198"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2130198\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2130199"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2130198"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2130198"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2130198"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}