U.S. stock markets experienced a significant decline, marking one of the most substantial drops of the year. This downturn followed the Federal Reserve’s indication that the anticipated cuts in interest rates for 2025 may be less frequent than previously anticipated.

On Wednesday, the S&P 500 index fell by 2.9%, pulling further away from the record high it reached just weeks ago. The Dow Jones Industrial Average plummeted by over 1,100 points, while the Nasdaq composite saw a drastic decrease of 3.6%.

The Federal Reserve’s latest projections revealed their expectation of only two interest rate reductions in the upcoming year, a revision from the four cuts that were forecasted a few months prior. As a result, Treasury yields surged, placing additional strain on the already beleaguered stock market.

To provide a clearer picture, on that same Wednesday, the S&P 500 dropped 178.45 points, or 2.9%, closing at 5,872.16. Meanwhile, the Dow Jones Industrial Average faced a decline of 1,123.03 points, roughly 2.6%, finishing at 42,326.87. The Nasdaq composite experienced a drop of 716.37 points, or 3.6%, ending at 19,392.69. Additionally, the Russell 2000 index, which focuses on smaller companies, fell by 102.57 points, or 4.4%, closing at 2,231.51.

Examining the week as a whole, the S&P 500 has decreased by 178.93 points, equivalent to about 3%. The Dow has seen a decline of 1,501.19 points or around 3.4%. The Nasdaq’s drop totals 534.03 points, which is about 2.7%. The Russell 2000 index has decreased by 115.38 points, approximately 4.9%.

Looking at the year-to-date performance, the S&P 500 is up by 1,102.33 points, or 23.1%. The Dow has increased by 4,637.33 points, which reflects a gain of 12.3%. The Nasdaq shows a robust rise of 4,381.34 points, translating to an increase of 29.2%, while the Russell 2000 also marks an upward trend with an increase of 204.44 points, or 10.1%.