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US stocks slip from record heights as recession fears offset rate-cut optimism

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Getty Images / Spencer Platt

  • US stocks slipped on Wednesday as traders mulled the risk of recession in 2024.

  • Those fears have cooled extreme bullishness among investors.

  • The Dow retreated from record highs after nine straight gains.

US stocks slipped Wednesday as traders mulled Fed rate cut risks into next year and the outlook for a US recession.

The Dow Jones Industrial Average retreated from record highs after nine straight gains. The S&P 500 also pulled back after nearing its all-time high.

Markets have grown concerned about implications of the Fed’s expected rate cuts next year. Lower rates could indicate a slowing economy, or one that may be already on the path to recession.

The New York Fed is pricing in a 51% chance a recession will arrive by November 2024. Meanwhile, markets are pricing in a 71% chance the Fed could slash interest rates 150 basis points or more by the end of next year.

Here’s where US indexes stood as the market opened at 9:30 a.m. on Wednesday: 

Here’s what else is going on: 

In commodities, bonds, and crypto: 

Read the original article on Business Insider

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