The stock market closed with steep losses Wednesday after the Federal Reserve cut interest rates but projected higher borrowing costs and steeper inflation for 2025.

The Dow Jones Industrial Average closed with a loss of 1,123 points, dropping 2.6 percent from the opening bell. Wednesday marked the first 10-day losing streak for the Dow since 1974, according to CNBC.

The S&P 500 index fell by 3 percent, and the Nasdaq composite plunged 4.1 percent on the day.

While the stock market has been in a rut for more than a week, Wall Street's woes deepened Wednesday after the Fed released economic projections that showed signs of slipping progress in the fight against inflation.

Fed officials projected two interest rate cuts in 2025, two fewer than they expected to issue as of September's projections. They also projected inflation to be higher, but stronger economic growth and employment levels than they expected in September.

Fewer interest rate cuts will keep borrowing costs higher for longer in 2025. Lower interest rates tend to spur the stock market, while investors typically recoil at rate hikes or delays in cuts.