The US stock market has seen a historic shift, with the Dow Jones Industrial Average recording its first nine-day losing streak since 1978. The index fell 267 points, or 0.61%, to close at 43,449.90 on Tuesday. While the broader market remains strong — with the S&P 500 and Nasdaq both near record highs — the Dow has struggled due to a rotation out of industrial and financial stocks, which make up much of its composition.
Technology stocks have been the main beneficiaries, but even Nvidia, a new addition to the Dow, has seen declines, slipping into correction territory. Meanwhile, Tesla gained ground as Broadcom fell 5%.
Market analysts point to investor uncertainty ahead of the Federal Reserve’s upcoming interest rate decision. The market is pricing in a 95% chance of a quarter-point rate cut, but there are concerns this could inflate a stock market bubble or drive inflation higher.
In Australia, the market is poised to follow Wall Street’s downward trend.
The Australian dollar dropped to 63.35 US cents — its lowest this year — amid weak Chinese retail sales and falling mining stocks.
ASX futures are down 14 points.
Sources: Bloomberg, FactSet, IRESS, TradingView, UBS, Bourse Data, Trading Economics, CoinMarketCap, Marketech.
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