Stock market today: Dow logs longest losing streak since 1978 as stocks slide ahead of Fed decision
Published On Dec 17, 2024, 4:02 PM
US stocks dropped widely on Tuesday, with the Dow marking its longest losing streak in 46 years, down approximately 0.6%. The S&P 500 and Nasdaq also fell 0.4% and 0.3%, respectively. The declines follow expectations of a possible rate cut from the Federal Reserve. Investors are cautious about resilient inflation and slowing growth in technology spending, particularly affecting Nvidia, which has seen its shares decline over 10% since November. Despite a good retail sales report, market sentiment remains uncertain ahead of the Fed’s decision on rates and overall economic outlook for 2025.
Stock Forecasts
MAGS
Positive
The continued downtrend in US stocks, particularly with the Dow's record losing streak and cautious investor sentiment, suggests a negative outlook. Nvidia's falling share price amid concerns of reduced AI spending further complicates the market's recovery efforts. However, certain stocks like those from the Magnificent Seven may offer defensive opportunities amid the broader declines.
NVDA
Negative
Given the recent performance, it's reasonable to expect Nvidia's struggles to continue in the short term due to increasing competition and fears of an AI spending slowdown. Significant challenges ahead could lead to further declines in its stock price.
SPY
Negative
The overall atmosphere around major stocks suggests that while there are periods of positivity driven by the Magnificent Seven, the general bearish sentiment around the broader market could lead to corrections in prices. The upcoming Fed meeting may pivot market direction in the near term.
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