NYSE closes lower on FOMC 'speed control theory' alert

New York stocks closed lower in unison on heightened caution that they would control the pace of rate cuts starting next year, a day before the Federal Reserve's last monetary policy decision of the year.

The blue-chip group Dow has backtracked for nine consecutive trading days, its longest decline since 1978, while Nvidia shares, which were included in the Dow's components last month, slipped to their lowest level since early October.

The Dow Jones 30 Industrial Average closed at 43,449.9, down 267.58 points and 0.61% from the previous session.

The benchmark Standard & Poor's 500 index of large stocks fell 23.47 points and 0.39% to 6,050.61, and the tech-heavy Nasdaq Composite Index fell 64.83 points and 0.32% to 20,109.06, respectively.

In response to this trend, Morgan Stanley attributed the Fed to cutting interest rates by another 0.25%p, but it is likely to stop cutting rates in January next year if additional strong economic indicators come out in the future.