ownership economy plunge: Should you be worried? Experts weigh in.

Panic convulsed the ownership economy within minutes late Wednesday after the Federal safety net announced that it expects fewer earnings rate cuts next year.

The Dow Jones Industrial Average dropped about 1,100 points, or 2.5%, marking its 10th consecutive day of losses. The S&P 500 plummeted nearly 3%, which amounted to the largest dip the index has taken following a Fed conference since 2001, according to data shared with ABC information by Deutsche lender Research.

A years-long economy rally suddenly appeared to wobble, posing a key question: Is this a blip on the path to further gains, or a sign of even worse losses to arrive?

Experts who spoke to ABC information described the selloff as an omen of tumultuous days ahead, pointing to a potentially prolonged spell of high earnings rates as well as uncertainty surrounding the U.S. economy under President-elect Donald Trump.

Despite this uncertainty, experts told ABC information that the economy continues to rest on sound footing, retaining the positive outlook for mid- and long-term gains.

“We’re used to the economy going straight up for so many months, and there’s going to be more volatility from here,” Ed Yardeni, the president of economy advisory firm Yardeni Research and former chief enterprise distribution strategist at Deutsche lender’s U.S. equities division, told ABC information.

Still, he added: “The reality is the economy is doing fine, which is bullish.”

The ownership economy indeed appeared to rebound in early buying and selling on Thursday, recovering some of the previous day’s losses. The Dow climbed about 250 points, or 0.6%, while the S&P 500 jumped 0.7%. The Nasdaq gained nearly 1%.

The Fed announcement Wednesday afternoon that triggered the alarm on Wall Street included information that the central lender cut earnings rates a quarter of a percentage point, but also a fresh projection anticipating fewer earnings rate cuts than expected just a few months ago: only a half a percentage point of rate cuts next year and another half-percent cut in 2026.

Lower earnings rates typically stimulate economic activity over the long term, keeping the economy growing and safeguarding the labor economy. They also tend to drive up corporate profits and ownership prices. In hypothesis, a longer-than-expected period of high earnings rates could diminish those returns.

“The economy threw a temper tantrum,” Ivan Feinseth, a economy analyst at Tigress financial, said in a statement to ABC information.

Investors reacted not only to the scaling back of earnings rate cuts but the reasons behind the selection that Fed Chair Jerome Powell offered, experts said.

Powell said stubborn expense boost influenced the Fed’s expectations, noting that some policymakers also factored in the uncertainty tied to potential policy changes under Trump.

“It’s ordinary-sense thinking that when the path is doubtful, you get a little slower,” Powell said. “It’s not unlike driving on a foggy night or walking around in a dim room packed of furniture.”

Some economists expect Trump’s proposals of heightened tariffs and the mass deportation of undocumented immigrants to raise customer prices.

“It’s not going to be a layup for Trump 2.0,” Yardeni said, noting the doubtful fate of a strategy statement currently on Capitol Hill that, if passed, would avert a government shutdown. “We can already view the mess with the circus in Washington, D.C.”

Even so, three experts who spoke to ABC information described the recent drawdown of ownership prices as an investor chance, and also highlighted the abiding strength of the U.S. economy.

“As we have hand-held investors the last few years on this Fed path, this sell-off is just another buying chance,” Dan Ives, a managing director of stake research at the enterprise distribution firm Wedbush, who focuses on the tech industry, told ABC information in a statement.

Overall, indicators display that the economy is growing at a solid pace, while the unemployment rate remains historically low.

“I feel very excellent about where the economy is,” Powell said on Wednesday.

Bret Kenwell, a U.S. enterprise distribution analyst at eToro, told ABC information that the ownership economy outlook remains positive due to robust corporate returns and resilient economic act.

“While the economy may be vulnerable to short-term weakness, the bull economy’s long-term fundamental catalysts remain in place,” Kenwell said.