The Dow Jones Industrial Average went down to about 2.6% or 1,123 on Wednesday, reaching its losing streak to 10 days, the longest that has ever been experienced since 1974 during the time of Gerald Ford as president.
This plunge comes after the announcement by the Federal Reserve anticipating just two interest rate cuts next year, far from its former four projections.
This shift also highlights the hope for a long time inflation going above target levels.
The 10-day drop of the Dow makes it the worst run since it last experienced in September-October 1974. The index remains at 14% in 2024 despite the drops.
Other important markets also plunged, including the S&P 500, which went down to 3%, and the Nasdaq Composite, which also dropped by 3.6%.
Those who had invested in different markets were disturbed by the Fed’s “hawkish cut” after a reduction in rage and a report that signaled extending tight monetary conditions. UnitedHealth Group’s 15% monthly went down, and Nvidia’s recent 5% decline played a part in what happened to the Dow.
The markets had previously gone up after the election that produced Donald Trump as president, caused by optimism against possible deregulation and tax cuts, but the Fed’s cautious outlook has taken away those gains.