The Dow just did something it hasn’t done since Jimmy Carter was president

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 267 points, or 0.6%, lower on Tuesday for its ninth straight day.

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

But the recent market decline has been mild, with the Dow losing just 3% over the previous eight trading days. It is hardly a blip in the big picture.

Not only that, but the losses have been mostly contained to the Dow.

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

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

UnitedHealthcare Group accounts for a significant portion of recent losses on the Dow. 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 Monday after President-elect Donald Trump promised to “knock out” middlemen in the drug industry.

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

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

Despite recent losses, blue chips are up 16% so far this year. Not only that, but the Dow is still about 1,500 points (3.5%) higher than it was on Election Day.

Markets initially rose after the election results, with investors breathing a sigh of relief that recounts and court battles were avoided. There has also been considerable enthusiasm for Trump’s promises to cut red tape and taxes.

“After the election, investors focused only on the good parts of Trump’s policies. Next year, they’re going to have to focus on both the good and the bad,” Lerner said, citing concerns about Trump’s threats to raise tariffs and launch mass deportations.

There hasn’t been a losing streak of 10 days or more since an 11-day recession 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 latest losses represent some profit-taking after steep gains in recent weeks.

There has also been a “modest resetting of expectations around the risks and opportunities associated with the incoming Trump administration next year,” he said, “and whether a Trump 2.0 policy agenda can spur the type of growth priced to shares.”