Despite the Dow’s nine-day losing streak, we are not in dire straits

This report is from today’s CNBC Daily Open, the international markets newsletter. CNBC Daily Open keeps investors informed on everything they need to know, no matter where they are. Like what you see? You can subscribe here.

The Dow fell for the ninth day
Tuesday, Dow Jones Industrial Average It lost 0.61%, recording a A losing streak that lasted nine days. the Standard & Poor’s 500 It decreased by 0.39% Nasdaq Composite Decreased by 0.32% Europe Regional Stokes 600 index decreased by 0.42%Affected by a decline in banking stocks by 1.4%. However, European technology stocks were able to defy the decline to add 0.61%.

What to expect from the Fed
The US Federal Reserve concludes its two-day interest rate setting meeting later on Wednesday. Although Inflation is sticky And a Flexible labor marketthe Federal Reserve Bank broadly It is expected to cut interest rates by 25 basis points. But a CNBC poll Of 27 respondents, including economists, strategists and fund managers, it showed that only 63% believe this is the right move for the Fed.

Nvidia and Broadcom are located side by side
Nvidia Shares fell 1.2% on Tuesday, finding themselves… Deeper into the patch areaIt is usually understood as a decline of 10% (or more) from the all-time high closing level. Broadcom The rally also lost steam, with its shares falling 3.9%.

Automakers, combine
Japanese automakers Nissan Motor and Honda Motors We are Consider a mergerAccording to Tuesday a report By Nikki. Both companies also plan to bring Mitsubishi Motors – in which Nissan owns 24%, making it the majority shareholder – under the eventual holding company. Honda and Nissan have neither confirmed nor denied this report.

(PRO) Santa Rally, hurry to the market tonight
Santa Rally is a phenomenon in which stock prices rise in the last five trading days of the year and the first two days in January. Once today’s Fed meeting concludes – and barring any unwelcome surprise – markets are poised to welcome Santa Claus and… Holiday episodeBank of America said.

the Heavier clouds On the Dow Jones index it is UnitedHealthwhich contributed to more than half of the index’s decline over the past eight sessions, noted CNBC’s Yun Li. The health insurance company shook a Fatal shooting to its CEO Brian Thompson as well as extensive industry sell-offs.

Outside of the Dow Jones, the stock market remains cheerful. Although the S&P and Nasdaq also fell in the latest trading session, both indexes are hovering near their record close. This suggests that it’s mostly Dow Jones stocks — “old economy” stocks like industrials, financials and consumer discretionary companies — that are faltering.

“Wall Street is waking up to the reality that a Trump presidency may not be as great for stocks as some had hoped,” said David Russell, global head of market strategy at TradeStation. “The financial and industrial sectors jumped on their wins but may now have to confront higher interest rates and trade uncertainties, and healthcare faces the greatest political risks in recent memory.”

Moreover, the Dow Jones losses may be consecutive, but the rise is not sharp. The index is only 3.6% away from its record high, and its 50-day moving average is still trending higher.

Even though the stock market is not giving investors money for nothing, we are still in dire straits.

— CNBC’s Yun Li, Michelle Fox, Fred Imbert, Alex Haring, Adrian van Hoermeeren, Brian Evans and Samantha Subin contributed to this report.