The Dow Jones Industrial Average rebounded on Thursday and Friday from its 10-day slide. That losing streak, capped by a Federal Reserve-spurred meltdown on Wednesday, was the 30-stock, blue-chip index's longest decline since 1974.
Only a few Dow Jones stocks came out of the punishing period holding gains. The unscathed handful included Boeing, Apple, Amazon and Coca-Cola.
10 Biggest Dow Jones Stock Laggards
Here are the 10 biggest losers of the Dow's worst stretch of declines in five decades:
UnitedHealth was the biggest Dow Jones stock laggard, sinking 18.2% from the Dec. 4 close to the close on Dec. 18. Shares of health insurers operating pharmacy benefit managers suffered broadly after President-elect Donald Trump threatened to "knock out the middleman" in the drug industry. UnitedHealth was already under pressure from the fatal shooting of Brian Thompson, the CEO of UnitedHealth's insurance unit, earlier in December.
| Stock | Ticker Symbol | % Decline (Dec. 5-18) | YTD Return | Composite Rating |
|---|---|---|---|---|
| UnitedHealth | -18.2 | -4.9 | 55 | |
| Nvidia | -11.2 | 171.1 | 97 | |
| Sherwin-Williams | -11.1 | 10.8 | 70 | |
| Travelers Companies | -9.8 | 26.4 | 85 | |
| Chevron | -9 | -4.3 | 36 | |
| Caterpillar | -8.9 | 23.8 | 68 | |
| Salesforce | -8.3 | 30.6 | 97 | |
| Goldman Sachs | -8.1 | 46.9 | 90 | |
| Home Depot | -8 | 13.2 | 62 | |
| Amgen | -7 | -8.6 | 58 |
Nvidia, which practically tied with Sherwin-Williams as the second biggest Dow Jones loser, reeled from reports about intensifying AI chip competition, including from Broadcom and Marvell Technologies. The leading artificial intelligence chipmaker's price decline steepened after Microsoft CEO Satya Nadella indicated that the AI chip frenzy may be easing. Microsoft is one of Nvidia's largest customers.
Sherwin-Williams felt the blues from a rotation out of cyclical names. The paint maker and other cyclical stocks got a boost from Donald Trump's U.S. election win in November.
But economically sensitive plays — including Travelers, Chevron, Caterpillar and Goldman Sachs — are having a tough December. The Dow's 10-day losing streak this month coincided with fresh concerns about the economy. Data reported during this 10-day period showed a rise in jobless claims.
Besides, the markets are growing more skittish about incoming President Donald Trump's uncertain — and possibly inflationary — tax and tariff policies. The Fed signaled a slower pace of rate cuts on Wednesday, socking stocks at large. The Dow Jones index suffered its worst one-day decline since August. The Nasdaq composite took its largest single-day loss since July.
Investors Aren't Hitting The Panic Button
Investors appeared to shrug off the Dow's 10-day losing streak on Thursday, with the 30-stock index adding 15.37 points, or 0.04%. Indeed, there are reasons for optimism. Corporate earnings remain solid. Earnings compounders still abound, with Nvidia stock bearing an IBD Composite Rating of 97, out of a best-possible 99.
But Wednesday's action cut sharply below the Dow's 50-day moving average. The S&P 500 cut below its 21-day and 50-day moving averages. The Nasdaq undercut its 21-day line. Both indexes saw rising volume, adding a distribution day for each index. IBD lowered its Stock Market Exposure recommendation to 60% to 80%, from 80% to 100%.
On Friday, the Dow Jones index rose 1.2% on cooler inflation data. It is now up about 13.7% for the year.
Please follow Aparna Narayanan on X @IBD_Aparna for more coverage.
