From CNBC: 2024-12-17 11:57:40

The Dow Jones Industrial Average has been on a nine-day decline, the longest losing streak since 1978. UnitedHealth is a big factor, down 20% this month due to a sell-off in pharmacy benefit managers. Investors are rotating out of cyclical stocks that initially benefited from Trump’s policies.

Despite the Dow’s historic losing streak, most investors remain optimistic about the economy for 2025. The broader market is still thriving, with the S&P 500 hitting a new high and the Nasdaq Composite reaching a record. The Dow’s sell-off is not of major concern as it is only down 3.5% from its recent high.

The Dow’s price-weighted metric is outdated, not reflecting the current market trends. Tech stocks are driving market gains, but the Dow’s lack of diversification limits its ability to capture these gains. Traders believe the recent retreat is temporary and expect a rebound after the Federal Reserve decision.

Read more: Why the Dow is in such a historic funk and how concerned you should be