The major indices on Wall Street closed sharply lower after the Federal Reserve's outlook on future interest rate cuts disappointed the market. The Dow Jones index recorded its worst 10-day correction since 1974. As expected, the Fed reduced interest rates by 0.25%, bringing the range to 4.25%-4.50%. However, the Fed indicated that it would only cut rates twice next year, lower than the anticipated four cuts. Chairman Jerome Powell stated that the central bank would be more cautious in lowering interest rates. As a result, the 10-year US Treasury yield rose above 4.5%. The US Dollar strengthened against most major currencies, while gold prices saw a significant correction.

The JCI closed 0.7% lower at 7,107 on Tuesday, December 17, 2024. The transportation sector saw the largest correction, while the consumer cyclical sector posted the biggest gain. Foreign investors recorded a net sell of IDR 473.97 billion, including in the non-regular market. For today’s trading, JCI is expected to move within the support range of 7,050/6,998 and resistance range of 7,150/7,190. Stock picks: BBRI, BBNI, ASII, UNVR, BREN, PTRO, ADRO, SSIA.

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