The Dow Jones Industrial Average sank over 1,100 points on Wednesday, as the index posted its 10th straight losing session as the Federal Reserve's rate cut outlook disappointed market participants. The broader market index S&P 500 also dropped nearly 3%, while the tech-heavy Nasdaq Composite lost about 3.6%.

Here's how the market settled on Wednesday:

S&P 500 Index (SPY  ): -2.95% or -178.45 points to 5,872.16

Dow Jones Industrial Average (DIA  ): -2.58% or -1,123.03 points to 43,326.87

Nasdaq Composite Index (QQQ  ): -3.56% or -716.37 points to 19,392.69

Moving Markets:

The Federal Reserve lowered its key interest rate by a quarter percentage point on Wednesday -- its third consecutive -- and issued a cautionary tone towards further cuts in the medium-term.

The Federal Open Market Committee reduced its overnight borrowing rate to a target range of 4.25% to 4.5% in a move widely expected by Wall Street. Policymakers also signaled for two more reductions in 2026 and another in 2027 in its meeting statement.

"With today's action, we have lowered our policy rate by a full percentage point from its peak, and our policy stance is now significantly less restrictive," Chair Jerome Powell said in its post-meeting remarks Wednesday afternoon. "We can therefore be more cautious as we consider further adjustments to our policy rate."

Separately, Powell said that future rate cuts next year will be based on economic data, not current conditions.

"I think the actual cuts that we make next year will not be because of anything we wrote down today," Powell said. "We're going to react to data; that's just the general sense of what the committee thinks is likely to be appropriate."

"But as for additional cuts, we're going to be looking for further progress on inflation as well as continued strength in the labor market," Powell added. "And as long as the economy and the labor market are solid, we can be cautious as we consider further cuts."

In Economic News:

U.S. Housing Starts fell and Building Permits rose in November as threats of tariffs on imported goods and potential labor shortages from looming mass deportations are expected to impact new construction in 2025.

The number of new home constructions fell 1.8% to 1,289,000 for November, the Commerce Department reported Wednesday, as single-family homebuilding fell 10.2% annually. Permits for construction, meanwhile, rose 6.1% from October last month to a seasonally adjusted annual rate of 1.505 million.

For Thursday:

Market participants will turn their attention towards earnings reports from companies including Micron Technology (MU  ), Lennar Corporation (LEN  ) and Darden Restaurants (DRI  ).