U.S. markets finished in negative territory on Tuesday (Wednesday AEDT) as the Dow Jones Industrial Average marked its longest losing streak since 1978, dropping for the ninth consecutive session and closing at three-week lows.
The 30-stock index fell by 267.6 points, or 0.6% to end at 43,449.9. The broader S&P 500 declined 23.5 points, or 0.4% to 6,050.6, while the tech-heavy Nasdaq Composite dipped by 60.6 points, or 0.3%.
The Dow's recent slump began shortly after it achieved a record high of 45,000 earlier this month. Interestingly, this decline contrasts with broader market trends, as the S&P 500 hit a fresh peak on 6 December and remains less than 1% below that level. Meanwhile, the Nasdaq Composite reached a record high on Monday.
Market participants have rotated out of traditional industrial stocks in recent weeks and into technology shares. Notably, Nvidia, a recent addition to the Dow, has not benefited from the tech rally, falling into correction territory earlier this week.
Among major technology companies, Tesla saw gains of 3.6% during Tuesday’s trading, Apple lifted 1% and Microsoft gained 0.6%.
The Dow’s trajectory has also been influenced by uncertainty surrounding the Federal Reserve’s upcoming interest-rate decision. The CME FedWatch Tool is pricing in a 95.4% likelihood of a quarter-point rate cut, but concerns linger about the potential risks of inflation or a market bubble from further monetary easing.
On the data front, November’s retail sales figures came in slightly ahead of expectations, while industrial production data fell for the third consecutive month.
On the bond markets, 10-year and 2-year rates were at 4.399% and 4.247%, respectively.