Despite the Dow’s nine-day losing streak, we’re not in serious trouble
Traders work at the New York Stock Exchange on December 17, 2024.
NYSE
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What you need to know today
The Dow fell for a ninth day
On Tuesday, Dow Jones Industrial Average lost 0.61%, marking the level 9-day losing streak. the S&P 500 0.39% slide and Nasdaq composite retreat 0.32%. European region Stoxx 600 index decreased by 0.42%weighed down by a 1.4% decline in banking stocks. However, European technology shares managed to overcome the decline to add 0.61%.
What to expect from the Fed
The US Federal Reserve concludes its two-day interest rate-setting meeting later this Wednesday. Even though Sticky inflation and one flexible labor marketFed is widely popular is expected to reduce interest rates by 25 basis points. But one CNBC survey Of 27 respondents, including economists, strategists and fund managers, only 63% said this was the right move for the Fed.
Nvidia and Broadcom go hand in hand
Nvidia The stock fell 1.2% on Tuesday, taking notice deeper into correction territorytypically interpreted as a 10% (or more) decline from an all-time high close. by Broadcom The rally also lost momentum, with its shares down 3.9%.
Automobile manufacturers, combined
Japanese auto manufacturers Nissan engine And Honda motorbikes To be consider mergeraccording to a third report by The Nikkei. Both companies are also planning to bring Mitsubishi engine – of which Nissan owns 24%, becoming the largest shareholder – ultimately belonging to the parent company. Both Honda and Nissan neither confirmed nor denied this information.
[PRO] Santa Rally, let’s go to the market quickly tonight
The Santa Claus Rally is a phenomenon in which stock prices rise on the last five trading days of the year and the first two days of January. Once the Fed meeting ends today – and barring any unwanted surprises – markets will be ready to welcome Santa and ring on holidaysBank of America said.
Bottom line
In February 1978, the Bee Gees’ song “Stayin’ Alive” topped the Billboard songs of the month chart. It’s also an ode to the Dow Jones Industrial Average, which is struggling with nine consecutive days of losses.
Nearly 50 years later, the Dow was mired in a 9-day losing streak. Taking another cue from the Billboard chart, all investors wish for Christmas is for the Dow to stop bleeding red.
That said, this is not a major wound for the 30-stock index, despite the scary numbers.
the heaviest resistance on the Dow is UnitedHealthCNBC’s Yun Li notes that this has contributed to more than half of the index’s decline over the past eight sessions. Health insurance companies were rocked by one fatal shooting by CEO Brian Thompson as well as a broader industry sell-off.
Outside of the Dow, the stock market remains vibrant. Although the S&P and Nasdaq also slipped in the most recent trading session, both indexes are hovering near record closing levels. This shows that most of the Dow’s stocks – “old economy” stocks like industrials, financials and consumer discretionary – are plunging.
“Wall Street is waking up to the reality that a Trump presidency may not be as beneficial for stocks as some expected,” said David Russell, head of global markets strategy at TradeStation. ”. “The financial and industrial sectors won thanks to his victory but may now face higher interest rates and trade uncertainties, and the healthcare sector faces the biggest political risks in recent times.
Furthermore, the decline in the Dow may be consecutive but the level of decline is not too large. The index is just 3.6% away from a record high and its 50-day moving average is still trending up.
While it’s not as if the stock market is giving investors money for nothing, we’re not at the breaking point yet.
– CNBC’s Yun Li, Michelle Fox, Fred Imbert, Alex Harring, Adrian van Hauwermeiren, Brian Evans and Samantha Subin contributed to this report.
