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The financial world is on tenterhooks as Fed decision day arrives. The Dow Jones Industrial Average, a barometer of the market's health, is currently skidding, with the artificial-intelligence darling Nvidia playing a significant role in dragging it down. This downward trend has investors worried as they await the Fed's final policy decision of 2024.

Anticipation and Uncertainty

Futures tracking the blue-chip index showed a slight uptick on Wednesday, with a 133-point or 0.3% increase. However, if the Dow were to fall today, it would mark its longest losing streak in nearly half a century. This potential streak has investors on edge, as it would be the worst run since October 1974.The S&P 500 futures also saw a 0.3% rise, but it has been experiencing a spell of bad breadth this month. More large-cap U.S. stocks have been falling than rising, indicating a broader market weakness. Contracts tied to the tech-heavy Nasdaq 100 also showed a 0.3% increase, suggesting that the tech sector may be stabilizing.The Fed's decision holds the key to reviving the slumping Dow or worsening the mood on Wall Street. While a rate cut is widely expected for the third meeting in a row, investors will be closely watching Chair Jerome Powell's press conference. This press conference could provide crucial clues about where borrowing costs are headed next year.

Market Sentiment and Central Bank Intrigue

There is an expectation that the central bank will slow down its rate-cutting pace next year due to the strength of the US economy. Susannah Streeter, the head of money and markets at Hargreaves Lansdown, emphasized the importance of Powell's press conference. She stated that Powell will be closely watched for clues about the pace of further monetary easing. However, given the unpredictability of Donald Trump's policy-making, guidance is likely to be limited.The Bank of Japan, Bank of England, Norway's Norges Bank, and Sweden's Riksbank are all set to announce their policy decisions on Thursday, adding to the central-banking intrigue. This means that the focus on monetary policy will continue beyond the Fed's decision.

Oil Prices and Bond Yields

Oil prices also saw a slight increase as traders weighed the impact of a Fed rate cut and tightening sanctions on Russia. The Brent international benchmark rose 0.5% to $73.54 a barrel, while West Texas Intermediate U.S. prices rose 0.6% to $70.50 a barrel. These price movements highlight the interconnectedness of different markets and the influence of central bank decisions on commodity prices.Bond yields remained largely unchanged over the past 24 hours. The yield on the 10-year Treasury note was 4.396%, and the 2-year note was yielding 4.251%. This stability in bond yields provides some indication of the market's expectations and sentiment.In conclusion, Fed decision day is a crucial event that will have far-reaching implications for the global financial markets. Investors will be closely watching the Fed's actions and Powell's words for clues about the future direction of interest rates and the overall economy. The uncertainty surrounding these decisions adds to the volatility and intrigue in the markets, making it a time of both opportunity and risk.