Summary of Financial Markets: Strong declines following the announcement of the U.S. Federal Reserve's decisions!

Financial markets experienced significant movements during trading on Wednesday, in light of the Federal Reserve's monetary policy decisions and a rate cut of about 25 basis points, which had a substantial impact on the markets.

In this context, the economic forecasts released by the U.S. Federal Reserve indicated that U.S. interest rates are expected to stabilize at 4.4% in 2024, around 3.9% next year, about 3.4% in 2026, approximately 3.1% in 2027, and 3.0% in the long term.

Here is a look at the performance of financial markets:

Impact of Federal Decisions on the U.S. Dollar

The U.S. dollar saw a notable increase following the Federal Reserve's monetary policy decisions. The dollar index rose to 108.20 points, recording an increase of 1.18%. This increase was driven by new economic forecasts indicating that U.S. interest rates will stabilize at 4.4% in 2024, enhancing the dollar's attractiveness in global markets.

Gold Prices Decline Due to Rising Dollar

Gold prices were negatively affected by the rise of the U.S. dollar, as the precious metal saw a sharp decline of about $53 per ounce. Gold settled at $2,593 per ounce, marking its lowest level in recent times. This drop resulted from weak investment demand for gold, which is considered a safe haven during times of uncertainty, especially with the Fed's shift towards a tighter monetary policy.

Bitcoin Under Pressure After Fed Statements

The Bitcoin currency saw a significant drop in the past hours, declining by 4.79% to reach $101,329. This drop coincided with statements from the U.S. Federal Reserve Chairman, who affirmed that the central bank does not hold Bitcoin and will not seek to own it in the future. This statement significantly impacted investor sentiment in cryptocurrencies, causing Bitcoin to fall sharply.

Oil Prices Decline Due to U.S. Inventory Data

On a different note, oil prices recorded a slight decline following the release of U.S. inventory data showing a decrease in inventories. West Texas Intermediate crude fell by 0.45% to reach $69.45 per barrel. This data weakened optimism about global oil demand in the near future, leading to a drop in crude prices.

Sharp Drop in U.S. Stock Markets

U.S. stock markets witnessed a significant decline during trading today, with major stock indexes dropping sharply. The Dow Jones Industrial Average fell by 1.72% to reach 42,701 points, while the S&P 500 index dropped by 2.19% to 5,918 points. The Nasdaq index also saw a decline of 1.45% to reach 19,235 points. These losses reflect growing concerns among investors regarding the future impacts of the Fed's decisions.

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