Market Jitters: Dow's Nine-Day Slide Amid Anticipation of Fed's Policy Moves

U.S. stocks declined as the Dow dropped for the ninth consecutive session, with investors showing caution ahead of the Fed's policy announcement. Economic data showing strong consumer spending and retail sales, coupled with expectations of interest rate cuts, contributed to market uncertainty as inflation remains a concern.

U.S. stocks pulled back on Tuesday, with the Dow enduring a ninth consecutive session of decline, as investors exhibited caution in anticipation of the Federal Reserve's final policy announcement for the year. Economic data revealed solid consumer spending with unexpectedly high retail sales in November, partly due to increased motor vehicle purchases, illustrating resilient economic momentum.

Investors are keenly awaiting the Fed's policy announcement set for Wednesday, largely anticipating a 25 basis point interest rate cut. Attention will be focused on the Fed's summary of economic projections and comments from Chair Jerome Powell, which should offer insights into the central bank's approach to rate cuts in 2025.

The Fed's potential slowdown in easing comes as the economy shows robust momentum and persistent inflation, amidst new policies from the incoming Trump administration aimed at stimulating growth. Market participants face uncertainty, contributing to cautious investment positioning ahead of the SEP and Powell's press conference.

(With inputs from agencies.)