The stock market in the USA finished at low points last working day. The Dow Jones Industrial Average in the US stock market is on a losing streak for the ninth consecutive day. The Dow Jones Industrial Average is on its longest losing streak since 1978. In this article, we will discuss the factors that led to the longest losing streak of the Jones Industrial Average.
The loss of the Dow Jones industrial average happened after the Federal Reserve Policy decision. The Dow Jones Fell for about 267 points at 0.6 % and ended at 43,449.90. The decline in the points of the Jones Industrial Average has been high since last August. The S&P closed at 6,050.61 and The NASDAQ closed at 20,109.6 losing about 64 points.
The change in the US stock market has affected investors adversely. Even the S&P and NASDAQ closed at low points. It seemed that the stocks would hit high but a sudden fall came in the stock market after the start of this month. The Jones Industrial Average also closed much below its 50-day average last working day. This happened for the first time after the US presidential elections in 2024.
Also read: Dow Jones vs. S&P 500: Which Index Better Reflects Market Health?
Factors that Affected the losing Streak of Dow Jones
Not only the Dow Jones Industrial Average but many other stocks are also affected by the loss in the US stock market. The surge after the US presidential election has ended. One of the factors that affected the loss of the Jones Industrial Average is that the investors favored technology-related stocks instead of the Dow Jones Industrial Average. Investors are also taking more interest in buying stocks of semiconductor companies like Broadcom Inc. and AVGO.
Considering S&P and NASDAQ Broadcom and other mega-cap tech stocks have increased their value. But in these tech stocks, some stocks like NVDA are not gaining much. Even though the ugh Dow Jones industrial Average includes four of the major tech stocks it was affected by the loss in the market. Chief Investment Officer of CS Mckee has said that one of the concerns with the Jones industrial average is that it is narrow.
The last working day was the twelfth consecutive day that the number of Stocks in S&P losing has overcome the number of gainers in S&P. According to the Dow Jones Data, the share of 500 stocks in S&P trading above the 50-day average has lost about 40.6 percent. This is the lowest moving average since the last May.
Another factor for the losing streak of the Dow Jones Industrial Average is because of the loss in points of United Health Group Inc. The United Health Group has contributed largely to the losing streak of Jones. The first drop of 1564 points in Dow Jones is due to the loss in value of the United Health Average. The loss of points in the United Health group is due to the Bipartisan efforts of Congress to break up insurers’ pharmacy benefits business. The news of the killing of Brian Thompson, CEO of the United Health Group is also another factor that contributed to the loss of United Health Group.
High Treasury Yield is also another factor that contributed to the losing streak of Dow Jones. There were concerns that the interest rate cuts of the Federal Reserve and the current situation of inflation would result in the rise of treasury yields. Mona Mahajan a senior investment strategist has said that we need to see rates move lower and inflation continue to cooperate. The Federal Reserve will probably deliver a 25 basis point cut in its policy rate target. The central bank may also release a new batch of projections that will probably show us how much cuts will be made in the coming year.
The ten-year treasury note saw a surge of about 20 base points last Tuesday. The rise in the treasury yield has made investors unhappy. Mona Mahajan has said that many other reasons made the stock market bullish these days. The economy in the US is going to expand more than three percent in this third quarter. A forecast from Wallstreet on corporate earnings tell us that the coming year will show strong growth and the non-tech companies’ value in the stock market will also increase.
Dow Jones Industrial Average
The Dow Jones industrial average established in 1896 shows us the average of 30 companies in the United States. The Jones Industrial Average tells us about the performance of the major companies and fluctuations in the American stock market. The thirty large companies in the Dow Jones Industrial Average include major companies like Apple, Coca-Cola, and Disney.
The Dow Jones Industrial Average is a price-weighted index where the stocks of high prices have a great influence on the movement of the index. The Jones industrial average shows and reflects the economic conditions in the USA but now the technological companies have a larger impact on the stock market and in the economy. The Jones industrial average is considered the oldest and the most prominent stock market index in the US economy.
Also read: Top Crypto Stocks in Dow Jones: Crypto’s Influence on the Dow
Conclusion
The Dow Jones industrial average shows the change in the US economy. The recent longest streak in the Jones Industrial Average has made a significant impact on the US stock exchange. In this article, we have discussed several factors that led to the longest losing streak of Dow Jones industrial averages.
