Stock Market Update Tuesday December 17, 2024

The Dow Jones Industrial Average (DJIA) is facing a significant change, marking its first nine-day losing streak since the 1970s after reaching over 45,000 points. This decline reflects a shift in investor sentiment. Many are reallocating funds from traditional companies to high-growth tech stocks, which have less impact on the Dow.

Other indexes, such as the S&P 500 and Nasdaq Composite, also fell. Investors are anxious about the Federal Reserve's upcoming interest rate decision, with expectations of a 0.25% cut to stimulate growth. However, this raises concerns about risky investment bubbles and rising inflation.

Additionally, November retail sales exceeded expectations, indicating robust consumer spending, complicating the justification for a rate cut. Consequently, investors face mixed signals, leading to market volatility and reevaluated strategies, as they prepare for fluctuating interest rates and corporate earnings reports.