The Dow Jones Industrial Average plummeted by 1,123 points or 2.6% on Wednesday, extending its losing streak to 10 days. This marks the longest such streak since Gerald Ford’s presidency in 1974. The blue-chip index has fallen for 10 consecutive sessions, a rare occurrence.
According to the Federal Reserve, it now anticipates just two interest rate cuts in 2025, down from the previously projected four. The Fed also expects inflation to remain above its target range for longer than initially thought.
Despite this, other indexes have seen significant gains recently. The S&P 500 fell 3%, while the Nasdaq Composite index dropped 3.6%. Investors had expected a quarter-point rate cut, which was indeed implemented by the Fed, but markets responded negatively to the revised interest rate outlook.
UnitedHealth Group’s 15% decline and Nvidia’s recent fall have contributed to the Dow’s slide. However, the Dow remains 14% higher this year, despite the recent losses. The market initially surged following the election results, with investors optimistic about Trump’s promises to cut red tape and taxes.
Source: https://edition.cnn.com/2024/12/18/economy/dow-10-day-losing-streak/index.html