When push comes to shove, the Federal Reserve has shown again and again that it is willing to shove the market in front of a train. On Wednesday, America’s central bank topped off a year of interest rate cuts with one more quarter-point cut. Instead of celebrating, the market freaked out as the Fed told Wall Street it should expect fewer rate cuts in 2025.

• The S&P 500 and Nasdaq 100 had their worst day of trading since 2001 — falling 3% and 3.6%, respectively, erasing much of their post-election gains.
• America’s growth stock index, the Russell 2000, suffered even more — uniquely sensitive to high interest rates, it fell more than 4.4% on the Fed’s announcement.

End of the line? Before Wednesday’s historic declines, Mr. Market had been soaring to new highs — with stocks tracking for their best performance this century after a post-election optimism injection. This was despite extremely rich valuations, alarming indicators, and analysts at financial institutions warning about the stretched market. It seems they’ve heard the message loud and clear now. Stocks were little changed on Thursday as investors digested what could come next.