DOW Plunges 1,100 Points As 10-Day Losing Streak Hits, Longest Downturn Since 1974

The Dow Jones Industrial Average plummeted Wednesday, marking its longest losing streak in nearly half a century as the Federal Reserve issued a lackluster economic forecast.

Closing down 1,123 points, or 2.6%, the blue-chip index has now declined for 10 consecutive days, a sequence last witnessed during the presidency of Gerald Ford from Sept. 20 to Oct. 4, 1974, according to CNN. This downturn began after the Fed’s policy statement revealed expectations of only two interest rate cuts in 2025.

The central bank forecasts that inflation will remain above its target for a prolonged period, dashing expectations for swift economic recovery, CNN reported. Despite the Dow’s fall, the broader market has shown resilience, with the S&P 500 and Nasdaq Composite consistently approaching or holding near-record highs.

However, both indices also suffered losses by the day’s end, with the S&P 500 down 3% and the Nasdaq tumbling 3.6%, CNN reported.  “The market was underwhelmed by the likely future path of interest rates,” said Chris Zaccarelli, CIO at Northlight Asset Management, in a statement.

Specific stocks also influenced the Dow’s trajectory. UnitedHealth Group, for instance, saw a downturn this month, dropping 15% after the shooting of UnitedHealthcare CEO Brian Thompson, CNN reported. Despite these challenges, UnitedHealth shares climbed 3.3% on Wednesday.

Conversely, Nvidia, a recent addition to the Dow, has experienced a decline over the past month, falling approximately 5% despite an overall annual gain of more than 180%, the outlet said. This drop has contributed to the overall drag on the index, but despite the prolonged downturn, the Dow has managed to remain 14% higher for the year, gaining more than 5,000 points in 2024.

Earlier today, the Federal Reserve slashed the federal funds