On Tuesday, the Dow Jones Industrial Average registered its name in the books of history marking the first nine-day losing streak since 1978. The 30-stock index fell by 267.58 points or 0.61% which closes at 43,449.90, meanwhile, the S&P 500 dipped by 0.39% to finish at 6,050.61. The Nasdaq Composite also went through a decline of 0.32% and ultimately finished at 20,109.06.
This downward trend for the Dow started just a day after it celebrated its historic close above 45,000 for the very first time earlier this month. Interestingly, this downturn occurs while the broader market thrives.
The S&P 500 reached a new peak on the 6th of December and it remained less than 1% shy of that milestone; the Nasdaq also achieved a record high on Monday.
The struggles of Dow can be attributed to a shift in investor focus towards technology stocks and it moved away from some traditional sectors that have seen gains in November after Donald Trump’s reelection. These older industries are heavily represented in the Dow, unlike the tech sector.
Nvidia in a recent addition to the Dow that joined in November also faced challenges despite the overall tech sector’s recent successes further slipping into correction territory on Monday.
David Russell, the global head of market strategy at TradeStation made a remark, “Wall Street is beginning to realize that a Trump presidency may not be the boon for stocks that many anticipated. Financials and industrials surged after his victory, but they now confront the realities of rising rates and trade uncertainties, while healthcare faces significant political risks.”
November’s retail sales figures exceeded the expectations of economists on Tuesday intensifying the worries that the Fed could be forced to take some measures that are not necessary for the same.
Thanks for choosing to leave a comment. Please keep in mind that all comments are moderated according to our comment Policy.