Dow Jones Drops 1,100 Points: Longest Losing Streak Since 1974 Amid Fed Rate Hike Concerns
The Dow Jones Industrial Average suffered a significant drop of over 1,100 points, marking its longest losing streak since 1974. The downturn came after the Federal Reserve’s policy statement, which signaled a slower pace of interest rate cuts than previously expected. Instead of four cuts in 2025, the Fed now forecasts just two, signaling tighter monetary conditions for a longer period due to persistent inflation.
This drop extended the Dow’s losing streak to 10 days, the longest since the Ford administration. While other indexes like the S&P 500 and Nasdaq also saw sharp declines, the Dow’s losses were relatively modest at under 6% over the stretch. On the other hand, stocks like UnitedHealth and Nvidia have also contributed to the index’s recent poor performance, despite the broader market showing strong gains for the year.
Despite this recent slump, the Dow remains up 14% in 2024, benefiting from initial post-election optimism. However, investor sentiment has cooled due to concerns over future rate hikes and the Fed’s cautious approach to inflation.
