Tesla down 8.3% and Amazon off 4.6% after Fed forecast cutting rates only twice next year

1) Investopedia:

•The Fed cut rates by 25 basis points on Wednesday, as market participants had expected. But policymakers in their Summary of Economic Projections forecast cutting rates only twice next year, half what they had penciled in when they last published their forecasts in September. 
•Stocks in the real estate and consumer discretionary sectors, two sectors particularly sensitive to interest rates and the health of the economy, tumbled as market participants reset their expectations for interest rates. 
•The S&P 500 Consumer Discretionary Sector Index fell 4.6%, weighed on by giants like Tesla, down 8.3%, and Amazon, off 4.6%. Those two were the worst performing of the Magnificent Seven stocks on Wednesday. The S&P 500 Real Estate Sector Index fell 4%.

2) AJ from X.com

•Tesla stock was set back by 2 trading days. The stock closed today at $440 which is above the opening price on Monday ($436). In after-hours at $430 (which often doesn't mean much), Tesla trades above the opening price of Friday ($418). All this on a day where the tech market sold off by -3.6% and the S&P 500 by -3.0%.

• Tesla is pulling back because the market doesn't like the FED Chair's comments on fewer potential rate cuts.

3) My Take

As I previously predicted, Tesla share price pullback is expected when faced with negative macroeconomics conditions. The stock fell the highest among the M7 stocks after it surged about 100% for the past 3 months (+93.7% after market closed today). We have to monitor what will happen in the next few days if the stock has peaked at 488.57 USD (new historical high and 52-wk high) but it looks like the Tesla bears are firing back.

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