The Dow simply did something it hasn’t done since Jimmy Carter’s presidency

new York
CNN
—

The world’s most famous market indicator just suffered its longest losing streak since Jimmy Carter was in the White House.

The Dow Jones Industrial Average closed Tuesday down 267 points, or 0.6%, for the ninth straight day.

Blue chips haven’t closed in the red for nine straight days since February 1978, according to FactSet data.

However, the recent market decline was mild, with the Dow losing just 3% in the last eight trading days. This is hardly a minor blip in the grand scheme of things.

Furthermore, losses were mostly limited to the Dow Jones.

The Nasdaq, powered by Big Tech and the artificial intelligence boom, is still on fire, although the tech-heavy index ended Tuesday down around 0.32%. The S&P 500 also fell on Tuesday, closing down around 0.39%.

“It’s a little strange,” said Keith Lerner, co-chief investment officer and chief market strategist at Truist Advisory Services. “Money continues to flow into technology stocks. That’s the dominant theme for this market: AI and technology.”

UnitedHealthcare Group is responsible for a significant portion of the Dow’s recent losses. The insurance giant has lost 18% of its value so far this month, a selloff that began after the fatal shooting of UnitedHealthcare CEO Brian Thompson. UnitedHealthcare fell again on Monday after President-elect Donald Trump vowed to “cut out” middlemen in the drug industry.

The Dow’s losing streak comes ahead of the Federal Reserve’s interest rate decision on Wednesday.

Investors generally expect the Fed to cut interest rates by a quarter point, although officials could signal plans to slow the pace of rate cuts in 2025.

Despite recent losses, the blue chips are up 16% so far this year. Additionally, the Dow is still about 1,500 points (3.5%) higher than it was on Election Day.

Markets initially rose sharply following the election results and investors breathed a sigh of relief that recounts and court battles were avoided. There was also great enthusiasm about Trump’s promise to cut bureaucracy and taxes.

“After the election, investors focused only on the good parts of Trump’s policies. Next year they need to focus on both the good and the bad,” Lerner said, citing concerns over Trump’s threats to increase tariffs and initiate mass deportations.

There hasn’t been a losing streak of 10 days or more since an 11-day slump in 1974, according to FactSet data.

“I don’t think the Dow’s recent losing streak is necessarily a sign of trouble ahead,” said Anthony Saglimbene, chief market strategist at Ameriprise.

Instead, Saglimbene said the recent losses represented some profit-taking, following strong gains in recent weeks.

There has also been a “slight decline in expectations about the risks and opportunities associated with the new Trump administration next year,” he said, “and whether a Trump 2.0 policy agenda can boost the growth priced into stocks.” “