S&P 500 gives up gains and declines as Apple and Tesla shares fall

Traders on the floor of the NYSE, October 21, 2022.

Source: NYSE

Stocks were wobbly on Tuesday as worries about rising prices and high inflation, which rocked the market last year, continued to trouble investors in the new year.

The S&P 500 fell 0.92%, the fastest decline since May 2020 for the manufacturing index in December from its intraday high. The Dow Jones Industrial Average fell 218 points, or 0.66%, and the Nasdaq Composite fell 1.29%.

Shares Tesla And Apple While the tech sector was hit hard as the Federal Reserve raised rates to fight inflation, it slipped, weighing on the broader market, a key theme ahead from 2022. Tesla fell more than 13% following disappointing fourth-quarter deliveries and Apple fell more than 3% on reports it will cut production due to weak demand.

This theme could continue into 2023 as the Fed is poised to continue raising interest rates in the coming months, stoking fears that the US economy could fall into recession.

“A sluggish environment in 2023 could further hamper the performance of tech stocks in the new year, as investors’ thirst for value-oriented companies and higher profit margins, more stable cash flows and stronger dividend yields increases,” wrote Greg Bassuk, CEO. AXS Investments in New York.

The major averages finished 2022 with their worst annual losses since 2008, snapping a three-year winning streak. The Dow ended the year down 8.8%, 10.3% off its 52-week high. The S&P 500 has lost 19.4% for the year and is off more than 20% from its record high. The tech-heavy Nasdaq fell 33.1% last year.

See also  Home Depot's strong quarterly housing market is still growing

Of course, there may be brighter days ahead. History shows that The U.S. stock market is rebounding after several years. In fact, the S&P 500 has, on average, gained 15% the following year after losing more than 1%.

Investors get a set of data in the first trading week of the year, which provides more information on the state of the economy.

Wednesday’s jobs and labor turnover survey, known as JOLTS, will be released in the morning and minutes of the central bank’s latest policy meeting will come out in the afternoon.

They are looking forward to Friday’s December jobs report, the final employment report the central bank must consider before its next meeting on February 1. There are also several speeches by central bankers on Thursday and Friday.

Leave a Reply

Your email address will not be published. Required fields are marked *