Market Snapshot: Dow falls 100 points as investors weigh fresh housing data, 2023 recession concerns

by | Dec 28, 2022 | Stock Market

U.S. stocks traded lower in early afternoon trade, but were off the session’s lows, as investors assessed economic data on the housing market amid concerns over rising interest rates and economic growth in 2023. How stock indexes are trading
The Dow Jones Industrial Average
DJIA,
-0.75%
fell 104 points, or 0.3%, to 33,129.

The S&P 500
SPX,
-0.91%
shed 14 points, or 0.4%, to 3,816.

Nasdaq Composite
COMP,
-2.62%
dropped 38 points, or 0.4%, to 10,315.

On Tuesday, the Dow rose 38 points, or 0.11%, to 33242, the S&P 500 declined 16 points, or 0.4%, to 3829, and the Nasdaq dropped 145 points, or 1.38%, to 10353.

What’s driving markets U.S. stocks were lower in early afternoon trade Wednesday on light volume trade as investors traded cautiously in the final week of 2022. “People just don’t quite yet look at this market and think it’s cheap,” said Tom Graff, head of investments at Facet Wealth, in a phone interview Wednesday. “Whoever is selling, is selling into kind of a weak bid.” Failed rallies are an established feature of bear markets and investors remain wary of applying overly bullish bets as the year draws to a close, especially given the holiday-thinned trading. “While I appreciate the natural instinct to ‘buy the dip’ in growth now that the year has ended, the simple truth is that the macroeconomic conditions that resulted in growth underperformance in 2022 are still in place,” cautioned Tom Essaye, founder and president of The Sevens Report, in a note Wednesday. “Rates are not falling quickly, are a long way from ‘low” and aren’t getting there anytime soon.” While the year-end period often sees a so-called Santa Claus rally, investors are assessing how the lifting of China’s Covid restrictions will ripple through global economies and markets, while looking ahead to the various headwinds likely in 2023. “If the Chinese reopening story is positive for oil and commodity prices – and for the massively battered Chinese stocks, it’s bad news for global inflation,” wrote Ipek Ozkardeskaya, senior analyst at Swissquote Bank, in a Wednesday note. “The surge in Chinese demand will certainly boost inflation through higher energy and commodity prices,” Ozkardeskaya added. “And in response to higher inflation, the central banks will continue hiking rates.” See …

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