Dow Jones on longest losing streak in 50 years, but outlook remains positive

From Nasdaq: 2024-12-18 10:25:00

The Dow Jones Industrial Average has experienced its longest losing streak in nearly 50 years, declining for nine consecutive sessions and losing over 1500 points. The historic drop came after reaching the 45,000 milestone. The SPDR Dow Jones Industrial Average ETF (DIA) has also shed 3.5% over the past nine days.

The plunge was partly caused by the decline in NVIDIA stock, which was added to the Dow Jones on Nov. 8 and has since dropped 12%. Healthcare stocks like UnitedHealth, Johnson & Johnson, and Amgen also contributed to the chaos. Financials and industrials, which initially rose on Trump’s win, are now losing due to higher rates and trade uncertainties.

Despite the recent decline, the outlook for the Dow Jones remains positive. The U.S. economy is growing, with rising consumer confidence and spending power. The incoming Trump administration is expected to boost the economy, along with lower interest rates. A strategist at Deutsche Bank predicts that global trade risks will favor Dow Jones.

The historic plunge may present a buying opportunity for investors, as the Dow Jones is still up 15.3% this year and 3.5% since Election Day. The ETF for the Dow Jones has a Zacks ETF Rank #1 (Strong Buy) with a Medium risk, indicating potential outperformance in the future.



Read more at Nasdaq: Dow on a Record Losing Streak: Should You Buy its ETF?