Since WWII there have been seven other 9-day losing streaks for the Dow.
Small sample size, yes. Still, higher a year later each time, up nearly 19% on average. pic.twitter.com/ifvlTewavj
— Ryan Detrick, CMT (@RyanDetrick) December 18, 2024
The Dow Jones Industrial Average closed lower by 267 points, or 0.6%, on Tuesday, marking its ninth consecutive day of losses. This is the longest losing streak for the index since February 1978, despite the losses being relatively mild. In contrast, the tech-heavy Nasdaq only fell by 0.32%, driven by substantial gains in Big Tech and the artificial intelligence boom.
The S&P 500 also experienced a modest decline, closing down 0.39%.
This is the 12th 9-day losing streak for the Dow since 1900.
Only 3.5% away from an all-time high is the closest to a new high ever, 6.3% in 1963 was the previous best.
Avg % away from new ATHs? 32.9%.
— Ryan Detrick, CMT (@RyanDetrick) December 18, 2024
Keith Lerner, co-chief investment officer and chief market strategist at Truist Advisory Services, commented on the market’s behavior, saying, “It’s a little quirky. Money continues to rotate into technology stocks.
That’s the dominant theme for this market: AI and technology.”
Editor's Take | The Nasdaq is soaring, while the Dow Jones lags behind. What’s fueling these divergent trends in the US markets?
Tune in for @nikunjdalmia's expert insights!#Nasdaq #DowJones #USA #USMarkets #StockMarket #GlobalMarkets pic.twitter.com/WYgVUB2ME4
— ET NOW (@ETNOWlive) December 18, 2024
UnitedHealthcare Group has significantly impacted the Dow, losing 18% of its value this month alone, contributing notably to the index’s recent losses.
Dow’s ninth consecutive decline
The Dow’s losing streak precedes an important Federal Reserve interest rate decision on Wednesday.
Investors widely expect a quarter-point rate cut, although officials may indicate plans to slow the pace of cuts in 2025. Despite the recent declines, the Dow is still up 16% for the year and remains about 1,500 points (3.5%) higher than its level on Election Day. The stock market initially surged following the election results, driven by investor optimism regarding President-elect Donald Trump’s promises to reduce taxes and regulations.
According to FactSet data, “There hasn’t been a losing streak of 10 days or more since an 11-day slump in 1974.” Anthony Saglimbene, chief market strategist at Ameriprise, does not believe the Dow’s recent losing streak is necessarily a sign of trouble ahead. Instead, he views the recent losses as a result of profit-taking after significant gains in recent weeks. Saglimbene also noted a “modest reset in expectations around the risks and opportunities associated with the incoming Trump administration next year.” The market continues to reflect a blend of cautious optimism and strategic adjustments as investors navigate the evolving economic landscape.
