Stock market today: Dow falls to open new year, weighed by Apple, Tesla
Investing.com | Author Liz Moyer
Published Jan 03, 2023 03:53PM ET
Updated Jan 03, 2023 04:10PM ET
By Liz Moyer
Investing.com -- U.S. stocks were off to a slow start in the new year, weighed by slumping tech giants as investors await this week’s minutes of the Federal Reserve’s last meeting.
At 16:04 ET (21:04 GMT), the Dow Jones Industrial Average was down 11 points or flat, while the S&P 500 was down 0.4% and the NASDAQ Composite was down 0.7%. All three indexes had recovered some of their losses during the day.
Apple shares (NASDAQ:AAPL) fell 3.7% and closed just below a $2 trillion market value for the first time since 2021. Meanwhile, shares of electric vehicle maker Tesla Inc (NASDAQ:TSLA) fell more than 12% on Tuesday, after falling 65% for 2022, after it reported lower-than-expected deliveries for the quarter and year.
Stocks ended 2022 with their worst showing since 2008 as interest rates rose throughout the year, pressuring once high-flying growth and big tech stocks.
The Fed has been on a campaign to stop inflation, embarking on the fastest pace of interest rate increases in decades, and it hasn’t finished yet. At December’s meeting, the central bank indicated rates would continue to rise until it was satisfied its mission to tame price increases was completed.
The S&P lost more than 19% last year, while the tech-heavy Nasdaq fell 33%.
Investors are eager to put the year in the rearview mirror and are hoping economic data this week can help push them forward. On Friday, the jobs report for December is due, and data on manufacturing is expected this week as the Fed minutes arrive. There will also be oil inventory data and job openings data for investors to absorb.
The market expects the Fed to raise its policy rate by a quarter of a percentage point when it next meets in February, which would be a slower pace than recent rate moves but still on an upward trajectory.
Casino stocks rose on the prospect of China's Macau gambling mecca reopening after COVID-related shutdowns and restrictions. Wynn Resorts Limited (NASDAQ:WYNN) shares were up 3.8%, while Las Vegas Sands Corp (NYSE:LVS) shares were up 2.6%.
Exxon Mobil Corp (NYSE:XOM) stock fell 3.4% and Chevron Corp (NYSE:CVX) shares fell 3% after crude oil prices slumped around 4% on Tuesday.
Get The News You Want
Written By: Investing.com
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.