- Tesla ruins profits with choppy deals
- Southwest Airlines Fails Government Scrutiny
- Index losses: Dow 0.67%, S&P 500 0.78%, Nasdaq 0.99%
(Reuters) – A major Wall Street index fell on Wednesday, initially on growing fears of a 2023 recession and a surge in COVID-19 cases in China, the world’s largest oil importer. gave up a slight rise in
Shares of Apple (AAPL.O), Alphabet (GOOGL.O) and Amazon.com (AMZN.O) fell 0.9% to 2.3% in the straight session.
Ten of the 11 sector indexes of the S&P 500 (.SPX) index fell. Energy stocks (.SPNY) tumbled 1.9%, the biggest loss, as concerns over Chinese demand weighed on oil prices.
Investors have been cautiously evaluating China’s move to reopen its COVID-hit economy on the back of a surge in infections.
Tesla (TSLA.O) is up 3% in volatile trading after hitting a more than two-year low in the previous session. The stock has fallen nearly 69% over the year.
The benchmark S&P 500 (.SPX) is down 20% year-to-date, setting its biggest annual loss since the 2008 financial crisis. The drop is more severe for the tech-heavy Nasdaq Composite (.IXIC). 34% over the same period.
“What’s happening today is that the market is starting to take seriously a recession in 2023,” said Michael Green, chief strategist and portfolio manager at Simplify Asset Management in New York. It’s a gradual continuation of a certain dynamic.”
Recent data showing easing inflationary pressures have bolstered hopes for less rate hikes, but a tight labor market and a resilient U.S. economy have raised concerns that interest rates will stay high for longer. Spurring.
Markets are currently pricing in 69% odds of a 25 basis point rate hike at the US central bank’s February meeting, with rates peaking at 4.94% in the first half of next year. .
At 2:27 p.m. ET, the Dow Jones Industrial Average (.DJI) fell 222.54 points (0.67%) to 33,019.02, the S&P 500 (.SPX) fell 29.8 points (0.78%) to 3,799.45, the Nasdaq Composite (. IXIC) fell by 102.49 points, or 0.99%, to 10,250.74.
Southwest Airlines (LUV.N) fell 4.1% per day after being accused by the US government of canceling thousands of flights.
Losers outnumber gainers on the New York Stock Exchange by a ratio of 3.34 to 1. Losers dominated on the Nasdaq with a ratio of 1.81 to 1.
The S&P 500 has made seven 52-week highs and seven lows. The Nasdaq Composite posted 50 new highs and 378 new lows.
Reported by Echo Wang, New York. Additional reporting by Amruta Khandekar and Ankika Biswas from Bangalore. Edited by Sriraj Kalluvila, Anil D’Silva and Richard Chang
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