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

Stock markets fell on Tuesday as investors weighed global economic uncertainty at the start of the new year.

The S&P 500 rose 0.08%, with the manufacturing index falling from its fastest intraday high since May 2020 in December. The Dow Jones industrial average fell 0.05%, reversing earlier gains. The Nasdaq composite gained 0.06%.

Shares of Tesla fell 6.6% following disappointing fourth-quarter deliveries. Apple fell more than 2% following reports that it was cutting production due to weak demand.

Investors are looking for signs that the global economy will continue to recover in 2023 and stocks will lift as issues weigh on markets in 2022. While there are fears that Federal Reserve rate hikes to control high inflation could push the US economy into recession, it could lead to a pause in rate hikes or a prelude to cutting rates later in the year. To increase stakes.

“As we continue to see the ‘glass half full’ at the end of ‘free money’ and overstimulation of the economy, better times could come for both the stock and bond markets as the New Year progresses,” wrote John Stoltzfus, chief investment strategist at Oppenheimer, in a Tuesday note.

History also shows that The US 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%.

The major averages ended 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.

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Investors get a set of data in the first trading week of the year, which gives them more information about the state of the economy. Construction costs are due Tuesday at 10 a.m. ET.

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.

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