Tesla Loses $127 Billion in Single Day ... Quantum Stock Jumps 53%

Major US indices closed with sharp collective losses on Wednesday, pressured by a sharp rise in bond yields after the Federal Reserve announced a more cautious path for monetary easing next year.

The Fed cut interest rates by 25 basis points to a range of 4.25%-4.50%, and the summary of economic projections indicated that it would make cuts totaling half a percentage point by the end of 2025 due to the strong labor market and the recent pause in reducing inflation.

U.S. Treasury yields rose after the statement, with the benchmark 10-year Treasury note touching its highest level since May 31 at 4.5%.

The Dow Jones Industrial Average fell 2.6%, or 1,123 points, on Wednesday, recording its biggest daily loss in more than 4 months, wiping out all of the gains made after Donald Trump was declared the winner of the U.S. presidential election.

The Dow Jones also fell for the 10th straight session, posting its longest losing streak since 1974.

The S&P 500 fell 2.95%, posting its biggest daily loss since Aug. 5, 2024. The Nasdaq Composite dropped 3.6%, posting its biggest daily loss in nearly five months.

The fear index (volatility) jumped 74%, its biggest gain in seven years.

Tesla shares fell 8% on Wednesday, falling from their record highs and posting their biggest daily loss in more than two months, wiping $127 billion off its market value in a single day.

Tesla shares were the biggest losers among the "Big Seven" in the US market, all of which recorded sharp losses after the Federal Reserve's pessimistic forecasts for the path of interest rate cuts in 2025.

Tesla's Shanghai factory manager Song Zhang also announced in an internal letter to employees that he was leaving his position effective Wednesday, without providing any clear reasons for the decision.

Quantum stock jumped 53% to a 15-year high, bucking a downward trend for most U.S. stocks on Wednesday.

The quantum computing company’s gains came after it won a major contract with NASA to handle the agency’s advanced imaging and data processing requirements.