On Tuesday, December 17, 2024, stocks experienced a decline as investors waited for the Federal Reserve’s interest rate decision. The Dow Jones Industrial Average saw its 9th consecutive daily drop, marking the longest losing streak since 1978, with a 0.6% decrease. Meanwhile, the S&P 500 and Nasdaq, despite falling by 0.4% and 0.3% respectively, remained close to record highs, less than 1% away.
Large-cap technology stocks showed mixed performance; Nvidia (NVDA) fell 1.2%, Broadcom (AVGO) dropped 3.9%, while Amazon (AMZN), Alphabet (GOOGL), and Meta Platforms (META) also faced losses. Tesla (TSLA) led the gainers, increasing by 3.6% due to optimism about its prospects under a Trump administration, given CEO Elon Musk’s relationship with the president-elect. Apple (AAPL) and Microsoft (MSFT) saw slight increases.
Healthcare stocks were under pressure following comments by Donald Trump about removing the ‘middleman’ in prescription drug markets. Humana (HUM) shares plummeted by 10.2%, the sharpest drop among S&P 500 stocks on Tuesday. Pfizer (PFE), however, rose by 4.7% after reaffirming its full-year 2024 projections and issuing guidance in line with analysts’ estimates.
The Federal Reserve’s two-day policy committee meeting, which began on Tuesday, is the focal point for market watchers this week. The Fed is anticipated to cut its benchmark interest rate, as it did in September and October. Investors are also keen to hear Fed officials’ post-meeting comments on Wednesday about the economic health and the rate outlook for 2025.
The 10-year Treasury yield, which correlates with interest rate expectations, remained unchanged at 4.40%. Bitcoin reached a new record high of $108,300, up more than 50% since the election due to optimism about supportive measures from the Trump White House and Congress. Gold futures were slightly down at around $2,660 an ounce, while crude oil futures fell nearly 1%.