US shares fell on Tuesday, taking the Dow Jones Industrial Average (DIA) to its first nine-day dropping streak since 1978.
The index misplaced greater than 250 factors, adopted by a drop of 0.43% and 0.51% for the S&P 500 (SPY) and the Nasdaq Composite (QQQ), respectively. The Dow has gathered a lack of 2.8% since the start of December.
traders await Federal Reserve’s newest rate of interest resolution this yr. Markets anticipate the Fed will ship one other quarter-point price reduce on Wednesday.
Although the market is nearly sure that the Fed will reduce this week, the retail gross sales stronger than anticipated in November have elevated uncertainty about subsequent yr’s financial coverage.
The power of consumption and the Fed debate
“November retail activity was strong as consumers have considerable spending power due to higher incomes, rising portfolio values and a stable financial foundation. This report will likely contribute to the Fed’s debate on the policy path to 2025.
Unless the labor market weakens materially, investors should expect the Fed to ease rates next year, but not as much as initially expected.
Jeffrey Roach, chief economist at LPL Financial.
Among individual stocks, Nvidia (NVDA) continued its correction on Tuesday. Shares of the AI chip maker are approaching bear market territory after falling one 17% from its all-time high in November.
Meanwhile, renewed optimism around Tesla (TSLA) sent the stock to another all-time high.
Main US indices at today’s close:
- S&P 500 (SPY): 6,050.61, down 0.39%
- Dow Jones Industrial Average (DAY): 43,449.90, down 0.61% (-267.58 points)
- Nasdaq Composite (QQQ): 20,109.06, down 0.32%
Market highlights:
- Bitcoin (BTC) showed three bullish signals pointing to a possible rally to $124,000 in the coming months.
- A key part of Russia’s oil trade has taken a hit in recent months due to a drop in seaborne shipments.
- Dwindling investors’ cash reserves could be a sign that it’s time to sell stocks, according to Bank of America (BAC).
- The stock market is on the brink of a “Santa Claus rally,” however provided that the Fed lives as much as expectations, says Bank of America (BAC).
In commodities, bonds and cryptocurrencies:
- West Texas Intermediate Crude Oil: It fell 0.64% to $70.26 per barrel.
- Brent: The worldwide benchmark fell 0.77% to 73.34 {dollars} per barrel.
- Gold: It fell 0.25% to $2,663.3 per ounce.
- 10-Year Treasury Yield: It remained unchanged at 4.399%.
- Bitcoin (BTC): rose 0.6% to $106,789.
