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The Dow slumped more than 1100 points on Wednesday after the Federal Reserve delivered a quarter-point rate cut but halved the number of cuts expected for next year, sending Treasury yields higher and triggering a sea of red across stocks.

At 4:00 p.m. ET (21:00 GMT), the Dow Jones Futures fell 2.6%, or 1123 points, the S&P 500 fell 3%, and the Nasdaq 100 Futures slipped 3.6%.

Fed halves rate-cut outlook for 2025

The Fed cut interest rates by 25 basis points on Wednesday but halved the number of rate cuts expected for next year due to concerns about a longer-than-expected journey to bring inflation down toward the 2% target.

Fed members now see the benchmark rate falling to 3.9% for next year, suggesting just two rate cuts compared to the prior forecast in September for four cuts.

Treasury yields jumped following the news, with the 2-year Treasury trading surging 11 basis points to 4.346%.

Nvidia rebound fades after sharp reversal; Jabil jumps; General Mills stumbles

NVIDIA Corporation (NASDAQ:NVDA) cut its intraday gains to 1% lower following the broader market slump. The chipmaker fell deeper into correction territory on Thursday following its 10% plunge from a recent peak.

Tesla Inc (NASDAQ:TSLA) halted its impressive run with an 8% slump.

Jabil Circuit Inc (NYSE:JBL) was in rally mode, surging 7% after reporting stronger-than-expected fiscal first-quarter results and guidance.

Elsewhere on the earnings front, Birkenstock Holding Ltd (NYSE:BIRK) reported Q4 results that topped Wall Street estimates, sending its shares more than 2% higher.

General Mills Inc (NYSE:GIS) stumbled after cutting its annual outlook on earnings, as a ramp-up in promotional activity dented margins.