Dow Losing Streak Reaches Eight; Fed Readies to Cut Key Rate Another 25 Basis Points

The start of a new week didn't go so well for holders of stocks in the Dow Jones Industrial Average, which closed lower for an eighth straight session, the longest losing streak since June, 2018. The Dow fell 110 points while the S&P and NASDAQ posted gains.

As the opening bell approaches, stock futures suggest that Tuesday might not be much better. Dow futures are down nearly 200 points, with NASDAQ futures off 60 and S&P futures down 23 points.

What's causing the malaise in the blue chips may be tied to concerns over Donald Trump's proposed tariffs. Since many of the 30 companies listed on the Dow serve diverse multi-national markets, there is fear that other countries would impose tariffs as reprisals to the U.S., possibly sparking a global trade war.

Alongside that proposition, the dis-inversion of the yield curve - which just happened fully last week - usually presages recession, so investors may be taking money off the table, booking profits.

Whatever is causing the Dow's demise, it's rattling key segments. The Dow is down 1,300 points since December 4.

The Fed's final FOMC meeting of the year begins today and concludes Wednesday with the rate policy decision at 2:00 pm ET. A 25 basis point cut to the federal funds target rate is a near certainty.

At the Close, Monday, December 16, 2024:
Dow: 43,717.48, -110.58 (-0.25%)
NASDAQ: 20,173.89, +247.17 (+1.24%)
S&P 500: 6,074.08, +22.99 (+0.38%)
NYSE Composite: 19,627.68, -101.69 (-0.52%)