The Dow Jones Industrial Average sank further into historic territory on Wednesday, closing out its 10th consecutive losing session. The index tumbled 1,123.03 points, or 2.58%, to end at 42,326.87, marking its steepest losing streak since an 11-day slide in 1974.
This was also its second 1,000-point loss of the year, with Wednesday’s decline being the worst since August.
The S&P 500 followed suit, dropping 2.95% to 5,872.16, while the Nasdaq Composite shed 3.56%, closing at 19,392.69. Losses deepened across the board as trading neared the close.
The Federal Reserve delivered a quarter-point rate cut on Wednesday, lowering its overnight borrowing rate to a range of 4.25% to 4.5%, as widely expected. However, markets were jolted by the Fed’s forecast for only two rate cuts in 2025, down from four predicted in its prior outlook.
Investors had been betting on a more aggressive pace of rate reductions next year, which fueled optimism in the bull market earlier this month. Treasury yields spiked following the Fed’s announcement, with the 10-year yield climbing above 4.5%, further pressuring equities.
The Dow’s losing streak began after it hit a record high above 45,000 on December 4. Since then, the index has shed 6% of its value. Initially, the slide was attributed to a shift from traditional industrial stocks toward technology shares, a sector underrepresented in the Dow compared to broader market measures.
However, Wednesday’s selloff extended across all sectors, with the S&P 500 posting its sharpest loss since August, cutting its 2024 gains to 23%.
