- Tesla gains 3.3% in the volatile trade
- Southwest Airlines fell 5.2% on government scrutiny
- Indices down: Dow 1.1%, S&P 500 1.20%, Nasdaq 1.35%
Dec. 28 (Reuters) – Wall Street’s major indices closed lower on Wednesday, with the Nasdaq hitting its lowest close in 2022, as investors grappled with conflicting economic data, rising coronavirus cases in China, and geopolitical tensions brewing. 2023.
NASDAQ Composite (nineteenth) It closed at 10,213,288, the lowest level since the bear market began in November 2021 after the index hit a record high. The last time the Nasdaq finished lower was in July 2020. Its previous closing low for 2022 was 10,321,388 on Oct. 14.
“There has been no Santa rally this year. The Grinch appeared in December for investors,” said Greg Pasuk, CEO of AXS Investments in Port Chester, New York.
December is usually a strong month for stocks, with a rally in the week after Christmas. S&P 500 index (.SPX) Dec. 18 recorded only losses since 1950, Truist Advisory Services data shows.
“Usually, the Santa Claus rally is based on hopes for the factors that will drive economic growth and the market,” Pasuk said. “Negative and mixed economic data, larger concerns about a resurgence of COVID and ongoing geopolitical tensions and…all of that also translates to Fed policy all hinder the emergence of Santa (who) at the end of this year.”
Investors have been assessing China’s move to reopen its coronavirus-hit economy as infections mount.
“With this current mix of increasing cases as Chinese restrictions open up, we see that investors are concerned that the fallout will ripple across many different industries and sectors as it did in the previous COVID period,” Pasuk said.
S&P 500 benchmark (.SPX) It’s down 20% year-to-date, on track for its biggest annual loss since the 2008 financial crisis. The rout was even sharper for the high-tech Nasdaq Composite. (nineteenth)which closed at the lowest level since July 2020.
While recent data indicating an easing of inflationary pressures has boosted hopes for a rate hike by the Federal Reserve, a tight labor market and resilient US economy have fueled concerns that rates may remain elevated for longer.
Markets are now pricing in 69% odds of a 25bp rate hike at the US central bank meeting in February and see rates peak at 4.94% in the first half of next year. .
Shares of Tesla Inc (TSLA.O) It gained 3.3% in a choppy trade, a day after hitting its lowest level in more than two years. The stock is down nearly 69% for the year.
Southwest Airlines (LUV.N) It fell 5.2% on the day after the company came under fire from the US government for canceling thousands of flights.
Apple company (AAPL.O)Alphabet Inc (GOOGL.O) and Amazon.com Inc (AMZN.O) It fell between 1.5% and 3.1% as the 10-year US Treasury yield recovered from a brief drop to rise for the third consecutive session.
Dow Jones Industrial Average (.DJI) It fell 365.85 points, or 1.1%, to 32,875.71 points. Standard & Poor’s 500 (.SPX) It lost 46.03 points, or 1.20%, at 3,783.22 points. and the Nasdaq Composite (nineteenth) It fell 139.94 points, or 1.35%, to 10,213.29 points.
Declining issues outnumbered NYSE takers 3.77 to 1; On the Nasdaq, the ratio was 1.97 to 1 in favor of declining stocks.
The S&P 500 posted seven new highs in 52 weeks and seven new lows. The Nasdaq Index posted 75 new highs and 421 new lows.
Trading volume on US exchanges reached 8.59 billion shares, compared to an average of 11.3 billion for the full session over the last 20 trading days.
Reporting by Echo Wang in New York; Additional reporting by Amruta Khandekar and Anika Biswas in Bengaluru. Editing by Sriraj Kaluvella, Anil D’Silva, and Richard Chang
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