Dow Slips as December Fed Hike No Longer Certain

The Dow Jones Industrial Average is trading near 53,400, down roughly 105 points on the session. That leaves the index about 2.5% below its record near 54,750 set in August.

Over the past eight days, market pricing has stopped treating a quarter-point Federal Reserve rate increase by December as a certainty. The Dow has weakened as those odds faded, a move the source frames as a term premium problem for the blue-chip index.

For the session, the decline underscores sensitivity to Fed policy expectations even as the index holds near historically elevated levels.