New York
CNN
—
The world’s most well-known market indicator simply suffered its longest shedding streak since Jimmy Carter was within the White House.
The Dow Jones Industrial Average closed decrease by 267 factors on Tuesday, or 0.6%, down for its ninth-straight day.
The blue chips haven’t closed within the crimson for 9 consecutive days since February 1978, in line with FactSet knowledge.
But the current market hunch has been delicate, with the Dow shedding simply 3% over the prior eight buying and selling days. That’s barely a blip within the massive image.
Not solely that, however the losses have been principally contained to the Dow.
The Nasdaq, powered by Big Tech and the factitious intelligence growth, remains to be on fireplace, although the tech-heavy index ended Tuesday decrease by round 0.32%. The S&P 500 was additionally down Tuesday, closing with a decline of about 0.39%.
“It’s somewhat quirky,” mentioned Keith Lerner, co-chief funding officer and chief market strategist at Truist Advisory Services. “Money continues to rotate into know-how shares. That’s the dominant theme for this market: AI and know-how.”
UnitedHealthcare Group accounts for a big chunk of the current losses on the Dow. The insurance coverage large has misplaced 18% of its worth to this point this month, a selloff that started after the deadly taking pictures of UnitedHealthcare CEO Brian Thompson. UnitedHealthcare dropped once more on Monday after President-elect Donald Trump vowed to “knock out” drug-industry middlemen.
The Dow’s shedding streak comes forward of Wednesday’s rate of interest resolution from the Federal Reserve.
Investors extensively count on the Fed to chop charges by 1 / 4 level, though officers may sign plans to gradual the tempo of cuts in 2025.
Despite the current losses, the blue chips are up by 16% to this point this yr. Not solely that, however the Dow remains to be about 1,500 factors (3.5%) larger than it was on Election Day.
Markets initially surged following the election outcomes, with buyers respiration a sigh of aid that recounts and court docket fights had been averted. There has additionally been important enthusiasm for Trump’s guarantees to chop crimson tape and taxes.
“After the election, buyers targeted solely on the nice components of Trump coverage. Next yr, they’ll must deal with each the nice and the unhealthy,” mentioned Lerner, referring to considerations about Trump’s threats to spike tariff charges and launch mass deportations.
There hasn’t been a shedding streak of 10 days or extra since an 11-day hunch in 1974, in line with FactSet knowledge.
“I don’t consider the Dow’s current shedding streak is essentially an indication of bother forward,” mentioned Anthony Saglimbene, chief market strategist at Ameriprise.
Instead, Saglimbene mentioned, the current losses represents some profit-taking after steep positive factors in current weeks.
There’s additionally been a “modest reset in expectations across the dangers and alternatives related to the incoming Trump administration subsequent yr,” he mentioned, “and whether or not a Trump 2.0 coverage agenda can spur the kind of progress being priced in to shares.”
