Dec 18, 2024 (Baystreet.ca via COMTEX) --
All it takes for the market to build on bearish momentum is a losing streak. Few investors may notice that the Dow fell for nine straight days. This is the longest streak since 1978. By comparison, the S&P 500 (IVV) and Nasdaq (QQQ) are faring better. Even the iShares Russell 2000 (IWM), which holds small caps, did not share the same streak. However, IWM stock almost daily since November 26. It traded higher in only two separate days.
Momentum traders pivoted into technology names. On Monday, mega-cap names such as Tesla (TSLA) or Apple (AAPL) closed at all-time highs. To not miss out, investors joined that trade.
Fearful investors may attribute Trump's presidency to the Dow's weak performance. Yet the latest economic data is pointing toward fewer interest rate cuts. For example, producer prices continued to rise while retail demand was strong. These are inflationary pressures that the Federal Reserve cannot ignore.
This afternoon, the Fed will announce its widely expected interest rate cut.
In the last week, Home Depot (HD), salesforce (CRM), Coca-Cola (KO), and Goldman Sachs (GS) were among the stocks that declined. Honeywell (HON), Amazon (AMZN), Apple, and Merck (MRK) were some of the firms that traded higher.
COMTEX_460992115/2559/2024-12-18T09:42:35
