Cisco Selloff Drives Dow Jones Decline, Rate Hike Odds Tumble
The Dow Jones Industrial Average (DJIA) traded near 53,700 on Thursday, roughly 75 points and a tenth of a percent lower. The decline is almost entirely attributed to one stock: Cisco, which dropped around 9% after releasing its fiscal fourth quarter earnings. This fall in Cisco's shares stripped close to $11 from the average, accounting for about 65 index points of the 75-point decline.
The DJIA's price-weighted methodology means that individual stocks have a significant impact on the overall average. In this case, one stock is dominating the entire session.
Federal Reserve futures now place the odds of at least one rate hike by December 9 at 68.3%, down from fully priced three sessions ago. This decrease in pricing suggests that investors are becoming less confident about an imminent interest rate increase.