Dow Jones Drops For Ninth Consecutive Session, Breaks 45-Year Streak
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On Tuesday, the Dow Jones Industrial Average tumbled by 267 points, extending its losing streak to nine consecutive trading sessions—the index’s longest since 1978.
While the broader market, including the S&P 500 and Nasdaq, has shown resilience, the Dow’s decline highlights a shift in investor sentiment away from industrial and financial sectors.
This downturn reflects a combination of uncertainty surrounding Federal Reserve policies and profit-taking in non-tech sectors that had previously rallied.
The Dow’s historic slide is driven by several notable factors.
UnitedHealth Group, a key component of the index, has plummeted by 20% this month, contributing to over half of the Dow’s recent losses.
This decline follows intensified scrutiny of the healthcare industry, spurred by policy proposals under the Trump administration targeting drug middlemen and aiming to reform pricing structures.
Additionally, cyclically sensitive stocks such as Caterpillar and Goldman Sachs, which saw significant post-election gains, are now under pressure as investors rotate away from these sectors.
This shift indicates a broader preference for tech-driven growth stocks, which have propelled indices like the Nasdaq to record highs.
The unique composition and structure of the Dow have also played a role in its underperformance. As a price-weighted index comprising just 30 stocks, the Dow is particularly sensitive to large movements in its higher-priced constituents, limiting its ability to track the broader market’s gains.
In contrast, the S&P 500 and Nasdaq, which include a wider array of companies and sectors, have benefited from continued strength in technology and consumer discretionary stocks.
Looking ahead, analysts are keeping a close eye on Federal Reserve policy signals, corporate earnings, and evolving sectoral trends to gauge whether the Dow can reverse its losing streak or if additional headwinds lie ahead.
Data: eToro, MarketScreener
