Stocks took a dive on Wednesday as market participants pulled back and cashed in some profits from Wall Street's recent end-of-year strength. The Dow Jones Industrial Average plunged more than 475 points, while the S&P 500 Index and Nasdaq Composite lost about 1.5% each.

Here's how the market settled on Wednesday:

S&P 500 Index (SPY  ): -1.47% or -70.02 points to 4,698.35

Dow Jones Industrial Average (DIA  ): -1.27% or -475.92 points to 37,082.00

Nasdaq Composite Index (QQQ  ): -1.50% or -225.28 points to 14,777.94

Despite Wednesday's downturn, all three market benchmarks are set to deliver both a winning month and year, especially as market optimism continues to grow due to the Federal Reserve's signalled interest rates cuts in 2024. The Dow and S&P 500 have gained more than 3% so far this month, and 12% and 22% year-to-date, respectively. Meanwhile, the tech-heavy Nasdaq has benefitted profoundly from the emerging artificial intelligence market this year, soaring 4% this month and more than 40% in 2023.

In the news, FedEx (FDX  ) shares dropped over 10% on Wednesday following its disappointing second-quarter earnings report and weaker-than-expected forward guidance. he sipping giant expects a low-single-digit decline in its full year revenue and lowered its sales outlook for a second straight quarter, impacting its fiscal year ending May 31.

"We expect revenue will continue to be pressured by volatile macroeconomic conditions, negatively affecting customer demand for our services across our transportation companies," FedEx said in a filing with a U.S. Securities and Exchange Commission (SEC).

However, CEO Raj Subramaniam offered a rosier outlook during the company's earnings call on Tuesday with investors when, arguing that in review of its performance in "environments with suppressed demand," FedEx is "delivering much better profitability today than we have historically."

On the economic front, existing U.S. home sales rose at a higher-than-expected rae in November, according to the National Association of Realtors' report on Wednesday, ending a five-month streak of declines. Sales of previously-owned holes increased 0.8% month-to-month to a seasonally adjusted annualized rate of 3.82 million units, surpassing expectations for a decline in sales.

"The latest weakness in existing home sales still reflects the buyer bidding process in most of October when mortgage rates were at a two-decade high before the actual closings in November," said Lawrence Yun, chief economist at NAR, in a statement. "A marked turn can be expected as mortgage rates have plunged in recent weeks."

Still, Yun added that "only a dramatic rise in supply will dampen price appreciation," as U.S. home prices continue to climb, pricing many would-be buyers out of the market.

For Thursday, market participants will react to a revised reading of third-quarter U.S. GDP as Wall Street heads towards its potential end-of-the-year "Santa Claus" rally.