On December 17th, the American stock market showcased a volatile day with all three major indices struggling to remain in the greenThe Dow Jones Industrial Average ended the day down by 0.61%, marking its ninth consecutive decline, a record not seen since 1978. The NASDAQ Composite dipped by 0.32% and the S&P 500 index fell by 0.39%. According to reports from the Consumer News and Business Channel, the significant downturn for the Dow can be attributed to investors shifting their focus towards technology stocks, leading to a sell-off of several traditional economy stocks that are primarily components of the Dow index.

In the tech sector, performance was markedly mixedTesla saw an increase of over 3%, while Apple registered nearly a 1% gain, and Microsoft remained in the greenConversely, NVIDIA dropped more than 1% for the fourth consecutive trading day

Other tech giants like Facebook, Amazon, and Google experienced minor declines as well.

Among the stocks impacting the Dow the most were UnitedHealth Group and Goldman Sachs, which both fell over 2%, leading the index downOther significant decliners included Seagate Technology, 3M Company, and Travelers Companies, all of which were down over 1%. On a brighter note, Johnson & Johnson, Coca-Cola, and Nike managed to secure gains of over 1%, while companies like Disney, VISA, and Walmart slightly edged upwards.

David Russell, the global markets strategist at TradeStation, stated, “Wall Street is beginning to realize that the impact on the stock market may not be as positive as some had hopedWhile financial and industrial stocks surged, they may now have to contend with higher interest rates and trade uncertainties, while healthcare stocks are facing political risks.”

Part of the reason for the profit-taking in non-tech stocks can be traced back to the upcoming interest rate decision from the Federal Reserve, scheduled for announcement the following Wednesday

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The FedWatch tool from the Chicago Mercantile Exchange indicates that traders assign a 95% probability to the Fed cutting rates by 25 basis pointsHowever, investor concerns loom over the Fed potentially misstepping, risking a stock market bubble or triggering further inflationThe recent retail sales data for November, which exceeded expectations, has intensified worries that the Fed might feel pressured to take unnecessary action.

CIO Jeff Gilberti from U.SShelter Wealth Management remarked that as 2024 approaches, keen interest is evident among traders eyeing the top seven heavyweight technology stocks, creating stagnation among other S&P 500 components, pushing the Dow to the sidelines.

Larry Benedict, CEO of Market Research firm “Speculative Traders,” highlighted that not only has the Dow now experienced nine consecutive days of decline, but the S&P 500 index has seen its up-and-down trend lines drop for eleven consecutive days, marking the longest streak since 2001—a situation that merits serious attention.

The U.S

Department of Commerce released data showing that retail sales and food services in November totaled $724.6 billion, reflecting a month-over-month increase of 0.7%, surpassing the market expectation of 0.5%. Meanwhile, the growth for October was revised upward from 0.4% to 0.5%. Excluding automobiles, retail and food services sales rose only 0.2% in November, which fell short of the expected 0.4%, while October's increase was updated from 0.1% to 0.2%.

Furthermore, data released from the Federal Reserve revealed that the industrial production index fell by 0.1% in November, a weaker-than-expected reading compared to a forecasted rise of 0.3%. The October figure was also revised down from a month-over-month decrease of 0.3% to a drop of 0.4%.

Additionally, the National Association of Home Builders released a report that indicated the housing market index remained stable at 46 for December, a reading below the projected 47.

Looking at specific stocks, Tesla’s share price surprisingly rose by 3.64%, contrasting with NVIDIA’s stock which saw a further decline of 1.22% on the same day.

Most major European stock indices closed the day lower, with Germany's DAX down by 0.33%, and the UK’s FTSE 100 dropping 0.81%. The French CAC40 index, however, gained marginally by 0.12%. The broader European Stoxx 50 index fell by 0.09%. According to Reuters, investors are awaiting the Fed's policy direction this week, with energy and banking stocks weighing down the European markets.

In commodity markets, international crude oil futures settled down by nearly 1%. West Texas Intermediate (WTI) for January delivery lost $0.63, a drop of 0.89%, bringing the price to $70.08 per barrel

Brent crude for February contracts also declined by 0.97%, pricing at $73.19 per barrel.

Both gold and silver prices fell concurrently, with COMEX gold down 0.33%, resting at $2,661.20 per ounce, while COMEX silver decreased by 0.28%, settling at $30.97 per ounce.

The U.Sdollar index experienced an uptickMeasuring the dollar against six major currencies, the dollar index rose by 0.09%, closing the trading session at 106.956. By the end of trading in New York, 1 euro could be exchanged for 1.0488 dollars, down from the previous day’s rate of 1.0510 dollars; conversely, 1 British pound equated to 1.2711 dollars, an increase from the previous day’s 1.2684 dollars.

In the scope of currency conversions, 1 dollar was exchanged for 153.34 Japanese yen, down from the previous day’s rate of 154.13 yen; for Swiss francs, the exchange was 1 dollar for 0.8924 francs, a decrease from 0.8948 francs; however, 1 dollar equated to 1.4310 Canadian dollars, an increase from the previous day’s 1.4237 dollars; finally, for Swedish kroner, 1 dollar exchanged at 10.9670 kronor, up from the previous day’s rate of 10.8870 kronor.