Dow Jones slips below 48,000 as profit-taking and thin trading weigh on markets
The Dow Jones Industrial Average has struggled to maintain its recent gains as the year draws to a close. After briefly dipping to test the 48,000-point level, it settled at 48,063 points by the end of trading. Analysts now view this threshold as a key support zone in the near term.
Despite the recent pullback, the index remains up roughly 13% over the past twelve months. It also sits about 28% higher than its 52-week low, reflecting a strong longer-term performance.
Trading activity was unusually quiet, with volumes well below the 20-day average. This lighter participation contributed to sharper price swings during the session. Market observers attributed the Dow’s decline to a mix of factors, including rising Treasury yields, thin holiday trading, and profit-taking in some of its largest components.
Among the worst performers were IBM, American Express, Disney, and Boeing. Their losses weighed heavily on the index. Meanwhile, Nike stood out as a bright spot, climbing after CEO Elliott Hill made a significant personal purchase of company shares. The Dow’s weakness mirrored broader market trends, as both the S&P 500 and Nasdaq also retreated. Technical indicators, such as the Relative Strength Index (RSI) at 62, suggest the market is in a consolidation phase rather than facing a deeper downturn. In related news, the Federal Open Market Committee (FOMC) continues to draw attention as discussions around future roles unfold. The committee, made up of 12 members—including the Board of Governors, the New York Fed president, and four rotating regional Fed presidents—may see changes ahead. Names like Kevin Hassett, known for a more 'dovish' stance, and Kevin Warsh, considered 'hawkish,' have been mentioned as potential candidates. Additionally, Cheryl Venable will step in as interim president of the Atlanta Federal Reserve once Raphael Bostic retires in February 2026.
The Dow’s recent dip highlights a cautious market mood as investors lock in profits before year-end. With the 48,000-point level now seen as critical support, traders will watch closely for signs of a rebound or further weakness. The index’s performance in early 2025 may hinge on broader economic signals, including Treasury yields and Federal Reserve policy decisions.
