The New York stock market experienced a broad sell-off on December 17.
Investors turned cautious as the Federal Reserve began its final two-day Federal Open Market Committee (FOMC) meeting of the year.
While the Fed is expected to announce a 0.25 rate cut when the meeting concludes on Wednesday, investors are concerned about the pace of future rate cuts in the coming year.
The stronger-than-expected U.S. retail sales figures for November, released that day, stoked inflation concerns and raised expectations for a slower rate of cuts next year, putting pressure on the stock market.
Dow Jones Hits Longest Losing Streak in 46 years
All three major indices declined amid investor caution.
The Dow Jones Industrial Average, which tracks 30 blue-chip stocks, continued its losing streak that began on December 5.
The Dow closed down 267.58 points (0.61%) at 43,449.90.
This marks nine consecutive trading days of losses, during which the index has shed 3.5%.
The Dow has recorded its longest losing streak since 1978, marking 46 years.
The Nasdaq Composite index, which includes a high proportion of tech stocks, fared slightly better. It posted the smallest decline among the three major indices.
The Nasdaq finished down 64.83 points (0.32%) at 20,109.06.
The S&P 500, including large-cap and technology stocks, closed down 23.47 points (0.39%) at 6,050.61.
Tesla Hits Record Highs For Three Consecutive Days
Despite the overall market downturn, major tech stocks generally performed well.
Tesla, in particular, saw a sharp rise. It was widely seen as a major beneficiary of President-elect Donald Trump’s rising policies.
Tesla’s stock surged $16.84 (3.64%) to $479.86.
Since December 13, Tesla has set new record highs for three consecutive trading days.
Tesla’s stock price jumped 15% in just three days. Since November 5, it has risen about 98%, nearly doubling in just over a month.
However, many analysts suggest that Tesla’s rise is just beginning. Some project that the stock could reach the high $700s by the second half of next year.
In contrast, Nvidia has declined four consecutive days since December 12, slipping $1.61 (1.22%) to $130.39.
Over the past four trading days, Nvidia has fallen by 6.4%, compared to its all-time high of $148.88 on November 7, when it dropped by 12.4%.
Apple, the world’s largest company in terms of market capitalization, has been quietly trending upward.
Apple closed up $2.44 (0.97%) at $253.48, buoyed by expectations of improved performance due to strong iPhone sales during the holiday season.
Apple continued its rise for four consecutive days since December 12, although the increase has been gradual. Over these four days, its stock price has grown by 2.3%.
Oil Prices Decline For Two Consecutive Days
International oil prices fell for the second consecutive day.
The start of the Fed’s final FOMC meeting of the year raised expectations that the rate cuts would slow down next year, leading to predictions of decreased oil demand.
Brent crude, the international benchmark, dropped $0.72 (0.97%) to $73.19 per barrel for February delivery.
Meanwhile, the U.S. benchmark, West Texas Intermediate (WTI) crude oil fell $0.63 (0.89%) to close at $70.08 per barrel for January delivery.
