Major US indices retreated on Tuesday with the Dow Jones Industrial Average (DJIA) dropping for nine consecutive days as investors exercised caution ahead of the US Federal Reserve’s (Fed) last policy announcement of 2024, reported Reuters.
The DJIA fell 267.58 points, or 0.61%, to 43,449.90 points on Tuesday, the S&P 500 slid 23.47 points, or 0.39%, to 6,050.61 points and the Nasdaq Composite dropped 64.83 points, or 0.32%, to 20,109.06 points.
The S&P 500 posted 11 new 52-week highs and 19 new lows, while the Nasdaq Composite recorded 81 new highs and 197 new lows.
- November retail sales grew above expectation buoyed in part by an acceleration in motor vehicle purchases, consistent with strong underlying momentum in a resilient economy.
Also, investors were largely focused on the Fed’s policy announcement the following day on Wednesday (US time zone), as the market has almost completely priced in an interest rate cut of 25 basis points.
The Fed’s summary of economic projections (SEP) and comments from Chair Jerome Powell are expected to gain market attention as the information indicates how aggressive the Fed will be in cutting rates in 2025.
While the Nasdaq hit a record high on Monday and the S&P 500 is up nearly 27% this year, the DJIA has struggled recently and suffered its ninth straight day of decline, its longest losing streak since February 1978.
Nearly all of the 11 major S&P sectors were lower on Tuesday, led by a 0.9% drop in industrials. Consumer discretionary was the sole advancer, lifted by a 3.6% gain in Tesla after the market analyst had projected a US$515 valuation for the electric vehicle maker. As at Tuesday’s close, Tesla’s stock settled at US$479.86. [US$1=RM4.455]
Pharmaceutical firm Pfizer jumped 4.7% after the drugmaker forecast 2025 profit roughly in line with Wall Street expectations.
Declining issues outnumbered advancers by a 2.77-to-1 ratio on the NYSE and a 1.79-to-1 ratio on the Nasdaq.
Volume on U.S. exchanges was 16.17 billion shares, compared with the 14.11 billion average for the full session over the last 20 trading days.
