The stock market entered the history books Tuesday with the Dow Jones Industrial Average notching its first nine-day losing streak since 1978. The 30-stock average slid 267.58 points, or 0.61%, to settle at 43,449.90. The S&P 500 lost 0.39% and closed at 6,050.61, while the Nasdaq Composite dropped 0.32% to end at 20,109.06.
The Dow’s losing streak began the day after it closed above 45,000 for the first time ever earlier in the month. This anomaly comes at a time when the broader market is doing well. The S&P 500 hit a new high on Dec.
6 and sits less than 1% from that level. The Nasdaq hit a record on Monday.
Dow’s longest slide since ’78
Behind the Dow’s losses has been a rotation into technology stocks and out of some of the more traditional stocks that gained in November following the reelection of President-elect Donald Trump. Even among tech, some stocks like a new Dow member that joined in November have struggled despite the tech sector’s recent gains. “Wall Street is waking up to the fact that a Trump presidency might not be as great for stocks as some people hoped,” said David Russell, global head of market strategy at TradeStation.
“Financials and industrials jumped on his win but now may face higher rates and trade uncertainties, and healthcare faces its greatest political risks in recent memory.”
One concern driving profit-taking in non-tech stocks is the upcoming Federal Reserve interest-rate decision on Wednesday. Traders are pricing in a 95% chance of a quarter-point cut, according to market data. However, some investors and economists worry the central bank could be making a mistake and risking a stock market bubble or sparking more inflation.
“The Mag 7 performance chasers are taking one last sprint towards 2024 year-end so far in December, leaving the rest of the S&P 500 stocks on the sidelines and kicking the Dow to the curb,” said Jeff Kilburg, CEO of KKM Financial. November’s retail sales figure came in better than economists expected Tuesday, adding to concerns that the Fed may be taking unnecessary action.
