"Stocks Decline Amid Fed's Hawkish Stance: S&P 500, Dow, and Nasdaq Drop"

**Major Index Performance**- **S&P 500**: Down 1.1% at 5,906 points[4].- **Dow Jones Industrial Average**: Down 1% at 42,573 points[4].- **NASDAQ Composite**: Down 1.2% at 19,486 points[4].**Key Factors Driving Today's Market Direction**- The market experienced a decline, partly due to the Federal Reserve's recent hawkish stance on interest rates, indicating fewer rate cuts in 2025 than previously expected[3].- Volatility increased, reflected in the Cboe Volatility Index (VIX) which, although lower than its peak, remains elevated[3].**Notable Sector Performance**- **Top Decliners**: - Energy: Down 5.6% for the week, though today's specific decline is not detailed[3]. - Materials: Down 4.1% for the week[3]. - Real Estate: Down 4.7% for the week[3].- **Top Gainers**: - Information Technology: Relatively stable with a weekly decline of only 0.7%[3]. - Utilities: Down 1.6% for the week, but less severely than other sectors[3].**Market Highlights**- **Most Actively Traded Stocks**: Not specified in the sources, but typically includes large-cap and volatile stocks.- **Biggest Percentage Gainers and Losers**: Specific stocks not mentioned, but sectors like Energy and Materials saw significant declines.- **Significant Market-Moving News Events**: - Federal Reserve's hawkish outlook on interest rates[3]. - Stronger-than-expected GDP growth in the third quarter[3].- **Important Economic Data Releases and Their Impact**: - U.S. GDP grew at an annual rate of 3.1% in the third quarter, up from an earlier estimate of 2.8%[3]. - The U.S. dollar surged relative to other currencies following the Fed's announcement[3].**Technical Analysis**- **Current Market Trend**: Mixed signals with short-term bearish indicators due to recent declines, but intermediate-term trends still show higher-highs and higher-lows, indicating a bullish bias[2].- **Key Support and Resistance Levels**: - S&P 500: Support at around 5850 and resistance at the 50-day moving average (5940)[2].- **Trading Volume Analysis**: Not detailed, but volatility and trading activity increased following the Fed's announcement[3].- **VIX Movement and Implications**: - The VIX surged 74% on Wednesday but settled down to 18.4 by Friday, indicating elevated but decreasing volatility[3].**Forward-Looking Elements**- **Pre-market Futures Indication**: Not specified, but typically follows the previous day's market direction.- **Key Events to Watch for Tomorrow**: - End-of-year trading and potential for a Santa Claus rally[2].- **Important Upcoming Earnings Releases**: Not specified for the immediate future.- **Potential Market Catalysts**: - Future interest rate decisions by the Federal Reserve[3]. - Economic data releases, including GDP and employment figures.This content was created in partnership and with the help of Artificial Intelligence AI