US Stocks Decline as Dow Jones Faces Longest Losing Streak Since 1978
U.S. stocks experienced a significant downturn on Tuesday, with the Dow Jones Industrial Average marking its first nine-day losing streak since 1978. The Dow fell by over 250 points, while the S&P 500 and Nasdaq Composite also recorded losses of 0.43% and 0.51%, respectively.
Since the beginning of December, the Dow has seen a 2.8% decrease, reflecting growing investor uncertainty ahead of the Federal Reserve’s final interest rate decision of the year. Market participants are anticipating a quarter-point rate cut, but recent economic data has complicated the outlook for monetary policy in 2024.
November’s retail sales figures, which surpassed expectations, have introduced a new element of unpredictability regarding the Fed’s future actions. Jeffrey Roach of LPL Financial noted, “Solid retail activity and consumer spending power could influence the Fed’s 2025 policy path.”
The labor market’s condition is expected to play a crucial role in determining the extent of rate easing next year, with analysts closely monitoring employment data for clues about the economy’s trajectory.
In individual stock performance, Nvidia continued its correction, approaching bear market territory after a 17% drop from November’s high. Conversely, Tesla’s stock reached another record high, buoyed by renewed bullish sentiment.
At the closing bell, the S&P 500 settled at 6,050.61, down 0.39%. The Dow Jones Industrial Average closed at 43,449.90, registering a 0.61% decline (267.58 points), while the Nasdaq Composite finished at 20,109.06, down 0.32%.
In other market developments, Bitcoin exhibited bullish signals, suggesting a potential rally to $124,000 in the coming months. Meanwhile, Russia’s oil trade faced setbacks with declining seaborne shipments, and Bank of America indicated that dwindling cash holdings might signal a time to sell stocks.
The commodities market saw West Texas Intermediate crude oil fall 0.64% to $70.26 per barrel, and Brent crude drop 0.77% to $73.34 per barrel. Gold decreased by 0.25% to $2,663.3 per ounce.
In the bond market, the 10-year Treasury yield remained unchanged at 4.399%, while Bitcoin increased by 0.6% to $106,789.
As investors await the Federal Reserve’s decision and guidance, market volatility is expected to persist, with the potential for a Santa rally hinging on whether the Fed meets market expectations.
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