The Dow Jones Industrial Average is on pace to extend its losing streak to its longest since the 1970s. The benchmark has fallen eight days in a row, with Tuesday’s decline adding to its losses. The last time the Dow suffered a stretch of nine consecutive losing sessions was in February 1978.
Despite the losing streak, the Dow is still up 16% for the year and its overall decline over the eight-day period has been a relatively mild 3%. The losses have been focused on the Dow, which is the worst-performing major index during the past week. In contrast, the Nasdaq and the S&P 500 continue to rise, with the Nasdaq setting new highs.
The tech-heavy index has been fueled by interest in artificial intelligence and a strong performance by Big Tech companies. This has contrasted with the decline in the Dow, which is being driven in part by the selloff of UnitedHealthcare Group after the fatal shooting of its CEO and negative comments made by President-elect Donald Trump about the drug industry.
The Federal Reserve is also set to make an interest rate decision this week, with many expecting a cut of a quarter point. However, investors are warning that the central bank’s actions may need to balance the benefits of rate cuts with concerns about the strength of the economy.
One analyst noted that investors need to be more cautious heading into 2025 as the benefits of Trump’s policies, such as regulatory relief and tax cuts, may be overshadowed by concerns about the impact of tariffs and deportations.
The Dow has not seen a losing streak of 10 days or more since 1974, leading some to believe that investors may be overdue for a correction.