The Federal Reserve’s decision to announce a quarter-point rate cut coupled with a hawkish outlook for future reductions affected tech stocks significantly. Major declines were seen in Tesla (NASDAQ:TSLA), Broadcom (NASDAQ:AVGO), and NVIDIA (NASDAQ:NVDA).

Market Reactions:

• Tesla: Fell 8.3%, while Broadcom dropped 6.9%, and NVIDIA slid 1.1%, reversing previous gains.
• Fed Policy Changes: The FOMC has now set its target federal funds rate between 4.25% and 4.50%. Future rate cuts will depend heavily on economic data.
• Economic Projections: The Fed adjusted its longer-run terminal rate upward, reflecting a more significant inflation outlook through 2026.

Broader Implications:

The recent tech pullback shows how shifting Treasury yields and cautious Fed signals can ignite sensitivity and volatility among growth stocks.