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The last time the Dow fell for 10 days in a row, Gerald Ford was president. But the Dow on Wednesday is in danger of matching that dubious 50-year milestone.
The Dow fell about 550 points, or 1.3%, after the Federal Reserve indicated in a policy statement that it is forecasting just two interest rate cuts in 2025, not the previously projected four. The Fed now anticipates inflation will remain stubbornly above its target range for longer than it had initially expected. Just 11% of investors expect the Fed to cut rates at its January meeting, according to FactSet data.
The blue-chip Dow Jones Industrial Average has fallen for nine days in a row, the first time it had a losing streak that long since February 1978, when Jimmy Carter was president.
Strangely, the Dow has fallen as the broader markets have remained strong. The Dow has lost just 4.6% in its long losing streak, a relative blip. Other indexes have been at or near record highs, but fell sharply Wednesday. The S&P 500 fell 1.6% and the Nasdaq Composite index fell 2.1%.
UnitedHealth Group’s 15% decline this month has dragged the Dow, in particuar, lower. The insurance giant’s selloff began after the fatal shooting of UnitedHealthcare CEO Brian Thompson. Ironically, UnitedHealth was about 3.4% higher Wednesday.
Nvidia, the US chipmaker that joined the Dow in November, has also dragged the 30-stock index lower. While Nvidia’s stock is up over 180% this year, it has fallen in the past month, down about 5% and contributing to the Dow’s decline.
The last time the Dow suffered a losing streak this long was in 1974, when the index fell for 11 sessions in a row between September 20 and October 4.
Despite the long slide, the Dow remains 14% higher this year, up more than 5,000 points in 2024 and more than 600 points (1.6%) higher than it was on Election Day.
Markets initially surged following the election results, with investors breathing a sigh of relief that recounts and court fights were avoided. There has also been significant enthusiasm for Trump’s promises to cut red tape and taxes.
This is a developing story and will be updated.
CNN’s Matt Egan contributed to this report.
