US Stocks and Bitcoin Tumble as Fed Signals Reduce Rate Cut Odds

US major indexes fell on November 14 amid speculation the Federal Reserve might pause December rate cuts, with volatility rising on weak economic data.

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Summary

On November 14, US stock markets declined sharply, with the S&P 500 down 0.8%, Nasdaq 100 falling 1%, and Dow Jones Industrial Average dropping 1.1%. The sell-off came as concerns grew that the Federal Reserve might pause its planned interest rate cuts in December. Persistent weak economic data fueled market volatility, with the VIX index rising above 22. The downturn followed earlier declines in October when hawkish Fed comments reduced the perceived probability of rate cuts and pressured both stocks and Bitcoin below $100,000.

Terms & Concepts
  • Federal Reserve (Fed): The central bank of the United States, responsible for setting monetary policy including interest rates.
  • Rate Cut: A reduction in the interest rate set by a central bank, often aimed at stimulating economic growth.
  • Volatility Index (VIX): A measure of market expectations for near-term volatility, often derived from options prices on the S&P 500 index.