Stocks fluctuate on Tuesday Wall Street First trading day of 2023 after the worst ending since 2008.
The S&P 500 gave up early gains and was down 0.3% at 10:05 a.m. ET. The Dow Jones Industrial Average fell 63 points, or 0.2%, to 33,081 and the Nasdaq fell 0.5%.
Yields on long-term bonds fell significantly. The yield on the 10-year Treasury note, which affects mortgage rates, fell to 3.75% from 3.88% late Friday. The stock and bond markets were closed on Monday for the New Year holiday.
Markets in Europe and Asia rallied.
US oil prices fell 1.7% and weighed on energy stocks. Devon Energy fell 1.2%.
Tesla shares plunged 9.3% after the electric-car maker’s 2022 sales disappointed investors.
Tesla shares fall at the beginning of the year on worries about weak demand
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Investors are opening the new year with concerns similar to those that dominated the market in 2022. Inflation is easing, but still persistently hot. That has kept the Federal Reserve positive.
The central bank, along with other banks around the world, has raised interest rates to slow economic growth. That has led Wall Street to prepare for a recession and higher unemployment that could be attributed to those policies.
The Fed will release the minutes of its December policy meeting on Wednesday, potentially helping investors better understand their decision-making process and mindset for 2023. central bank on interest rates are set on February 1.
Investors are awaiting some updates on the jobs market this week, which is a strong sector of the broader economy. That has helped pull the economy out of recession, analysts say, but it has also made the Fed’s fight against inflation harder and increased the risk that it could go too far and trigger a recession.
The government will release its job openings report Wednesday for November, followed by its weekly jobless rate report on Thursday. The broader and closely watched monthly employment report, for December, will be released on Friday.
© 2023 Canadian Press
