The Dow Jones Industrial Average marked a grim milestone Tuesday, logging its first nine-day losing streak since 1978.
The 30-stock index fell 267.58 points, or 0.61%, settling at 43,449.90. Meanwhile, the S&P 500 slid 0.39% to 6,050.61, and the Nasdaq Composite edged down 0.32% to 20,109.06.
Despite the Dow’s persistent slump, broader market indicators show resilience.
The S&P 500 remains less than 1% shy of its recent high, and the Nasdaq Composite hit a record earlier this week.
But this divergence underscores a rotation in market sentiment—old-economy stalwarts are losing ground to surging technology stocks.
The Dow’s trouble started shortly after crossing the 45,000 mark for the first time earlier this month.
Stocks that rode the business wave of optimism following Donald Trump’s reelection—primarily industrials and financials—are now grappling with uncertainty around interest rates, trade policy, and healthcare reforms.
Even Nvidia, a tech newcomer to the Dow, hasn’t escaped the slump, entering correction territory earlier this week.
“Wall Street is waking up to the fact that a Trump presidency might not be as favorable for stocks as initially hoped,” noted David Russell, global head of market strategy at TradeStation.
“Financials and industrials jumped after his win but now face headwinds from rising rates and trade uncertainties, while healthcare is under significant political scrutiny.”
Tech remains a mixed bag.
Tesla gained on Tuesday, while Broadcom saw a decline of 3.9%, reflecting mixed performance within the tech sector.
The broader tech rally—dubbed the “Mag 7 sprint”—has lifted select stocks, leaving much of the market sidelined.
Jeff Kilburg, CEO of KKM Financial, remarked, “The Mag 7 performance chasers are racing into year-end, leaving the Dow trailing behind its peers.”
Investors are eyeing the Federal Reserve’s interest-rate decision on Wednesday, with traders pricing in a 95% likelihood of a quarter-point cut, according to CME Group’s Fed Watch tool. However, the move isn’t without controversy.
Concerns linger that the Fed could inadvertently inflate a market bubble or stoke inflation.
Adding to the tension, November’s retail sales beat expectations, fueling fears that the central bank’s strategy may be overly aggressive.
The market, it seems, is caught in a tug-of-war—investors are wary of overcorrection even as some sectors surge ahead.
For now, the Dow remains in the doldrums, a reminder of the market’s unpredictability and the shifting tides of investor sentiment.
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