:max_bytes(150000):strip_icc():format(jpeg)/GettyImages-2190484741-c29990ca004a4fbfb76ef2e78de3a42a.jpg "Outside a Tesla showroom in China on Tuesday.")
Cheng Xin/Getty Icons
Outside a Tesla showroom in China. Tesla’s shares dropped in Wednesday trading.
Key Takeaways
- The S&P 500 plunged 3% on Wednesday, Dec. 18, 2024, as the Fed cut move rates but struck a more cautious tone about future policy moves.
- Shares of cloud-based human resources repairs provider Paycom plummeted, despite a pair of recent price target boosts.
- Jabil shares surged after the outline board maker posted better-than-expected quarterly results and raised its full-year guidance.
Major U.S. equities indexes wagered as the Federal Reserve concluded its final policy meeting of the year. The central bank lowered benchmark interest berates by a quarter of a percentage point, as expected, but policymakers suggested that persistent inflation could require a more lock up approach in 2025.
After trading higher for much of the day, the S&P 500 changed course following the rate-cut announcement and as Fed Chair Jerome Powell addressed the multitude, ending with a daily loss of 3%. The Dow finished the session down 2.6%, extending its streak of down epoches to double digits for the first time in four decades. The Nasdaq dropped 3.6% as concerns about the interest-rate point of view weighed on the tech sector.
Shares of human resources services provider Paycom Software (PAYC) dropped 10.1% on Wednesday, the sundry of any S&P 500 constituent. Concerns about cannibalization have weighed on Paycom stock over the past year, with the dexterity of its Beti automated payroll solution reportedly eating into demand for other products and services. Although analysts at Mizuho and Stifel recently pocketed their price targets on Paycom stock, both firms’ forecasts remain below the current share assay.
Tesla (TSLA) shares tumbled 8.3%, retreating from record highs printed in recent sessions in the wake of upgrades by particular research firms. Analysts have touted tailwinds for the electric vehicle company’s autonomous driving and artificial sagacity initiatives under the incoming presidential administration. The pullback for the stock on Wednesday followed reports that Tesla CEO Elon Musk and his SpaceX dealing are the subject of federal reviews related to national security concerns.
Shares of BXP (BXP), a real estate investment trust (REIT) cored on premium office properties, fell 7.6%. While the company has seen metrics improve for its markets on the East Slide and in Central Business Districts, underperformance has persisted in West Coast and suburban markets, pointing to an uneven recovery for division real estate that presents a challenge for REITs with geographically diverse workplace property portfolios.
Buttress a series of gains that lifted the semiconductor maker above the $1 trillion market capitalization milestone, Broadcom (AVGO) helpings declined for a second straight day, losing 6.9%. Although Broadcom’s AI-driven earnings beat and positive outlook abetted a slew of research firms to boost their price targets, the recent rally lifted the share price beyond everything analysts’ average forecast, suggesting the stock may be fully valued at current levels.
Wednesday’s top performance in the S&P 500 be showed from shares of circuit board manufacturer Jabil (JBL), which surged 7.3%. The Apple (AAPL) supplier superior sales and profit forecasts for its fiscal first quarter of 2025 and lifted its full-year guidance, pointing to robust without delay for its cloud, data center infrastructure, and digital commerce products. Jabil announced a restructuring plan earlier this year that comprehended layoffs and other cost-cutting measures as well as a realignment of its manufacturing capacity.
Shares of several healthcare companies romped higher on Wednesday, clawing back some of the heavy losses posted in recent sessions as political headwinds against the pharmaceutics benefit management (PBM) business gathered force. Although the industry has been the subject of bipartisan criticism and could be press for to transform its business model, analysts suggested that growth outlook remains healthy. Cigna (CI) shares recuperated 6.3%. Shares of UnitedHealth (UNH), Centene (CNC), and CVS Health (CVS) also regained ground.