The Dow Jones Industrial Average experienced its first nine-day losing streak since 1978, falling 267.58 points to close at 43,449.90. The decline was driven by a rotation out of old-economy stocks and into technology stocks, with Nvidia, a new member of the Dow, struggling despite the recent gains in the tech sector. The S&P 500 lost 0.39% and closed at 6,050.61, while the Nasdaq Composite dropped 0.32% to end at 20,109.06.
The selling pressure was attributed to concern over the upcoming Federal Reserve interest-rate decision, with traders pricing in a 95% chance of a quarter-point cut. However, there is concern that the central bank may be making a mistake and risking a stock market bubble or sparking more inflation.
Analysts noted that the current market environment is unusual, with the broader market performing well, but the Dow experiencing losses. The rotation out of old-economy stocks and into technology stocks is a key factor, with financials and industrials, which dominate the Dow, being affected. The upcoming Fed decision is also a key concern, with some investors and economists warning that the central bank may be taking unnecessary action.
The recent decline has been attributed to profit-taking, with some investors reducing their exposure to the market ahead of the year-end. The retail sales figure for November came in better than expected, adding to concerns that the Fed may be acting too quickly.