Traders work on the New York Stock Exchange on December 17, 2024.
NYSE
This report is from today’s CNBC Daily Open, our international markets newsletter. CNBC Daily Open provides investors with information on everything they need to know, no matter where they are. Do you like what you see? You can subscribe here.
What you need to know today
Dow falls for ninth day
On Tuesday, again Dow Jones Industrial Average It lost 0.61%, marking a nine day losing streak. The S&P 500 A decrease of 0.39% and Nasdaq Composite It retreated 0.32%. European region Stoxx 600 table of contents down 0.42%the 1.4% decrease in bank stocks weighs. European tech stocks, however, managed to buck the decline to add 0.61%.
What to expect from Fed
The US Federal Reserve will conclude its two-day rate-setting meeting this Wednesday. However sticky inflation and a resilient labor marketThe Fed is broad rates are expected to drop 25 basis points. But a CNBC poll Of the 27 respondents, including economists, strategists and fund managers, only 63% believe the Fed’s move is the right one.
Nvidia and Broadcom fall together
Nvidia shares fell 1.2% on Tuesday, finding themselves deeper into correctional territoryusually understood as a 10% (or more) decline due to permanent closure. from Broadcom the rally also lost momentum, with its shares down 3.9%.
Automakers, combine
Japanese automakers Nissan Motor and Honda Motors are considering a mergeraccording to a Tuesday the report From Nikkei. Both companies also plan to bring it Mitsubishi Motors — He owns 24% of Nissan, making him the main shareholder — finally subordinate to the holding company. Honda and Nissan neither confirmed nor denied the report.
(PRO) Santa Rally, rush to the market tonight
The Santa Rally is a phenomenon in which stock prices rise during the last five trading days of the year and the first two of January. When the Fed meeting ends today – and with no surprises – the markets are ready to welcome Santa Claus. go on vacationsaid Bank of America.
Bottom line
In February 1978, the Bee Gees’ song “Stayin’ Alive” was the biggest Billboard song of the month. It was also the anthem for the Dow Jones Industrial Average, which was losing for nine straight days.
Almost fifty years earlier, the Dow is once again mired in a nine-day losing streak. To take another cue from the Billboard chart, all investors want for Christmas is for the Dow to stop bleeding red.
That said, it’s not a huge blow to the 30-stock index, despite the scary numbers.
The the heaviest drag It’s in the Dow United Healthwhich has contributed to more than half of the index’s decline over the past eight sessions, CNBC’s Yun Li noted. The health insurance company shook it up fatal shooting CEO Brian Thompson and wider industry sales as well.
Outside of the Dow, the stock market is still upbeat. Although the S&P and Nasdaq also slipped in the last trading session, both indices are close to record closes. This suggests that the majority of the Dow’s constituents – the “old economy” – are stocks like industrials, financials and consumer discretionary.
“Wall Street is waking up to the fact that the Trump presidency may not be as good for stocks as some people expected,” said David Russell, head of market strategy at TradeStation. “Finances and industrials pounced on its victory, but may now face higher rates and trade uncertainties, and healthcare faces the greatest political risks in recent memory.”
Also, the Dow’s losses may be consecutive, but the slope is less steep. The index is only 3.6% off its record high, and the 50-day moving average remains in an uptrend.
While it’s not as if the stock market isn’t giving investors money, we’re not in dire straits yet.
– CNBC’s Yun Li, Michelle Fox, Fred Imbert, Alex Harring, Adrian van Hauwermeiren, Brian Evans and Samantha Subin contributed to this report.
