Market Snapshot: U.S. stocks finish modestly lower to kick off 2023 with last year’s pattern — more losses

by | Jan 3, 2023 | Stock Market

U.S. stocks edged lower on Tuesday, finishing up the new year’s first trading session with an all too familiar 2022 pattern of volatile moves that trend downward amid worries about high inflation and a possible recession. How stocks traded
The S&P 500
SPX,
-0.40%
dropped 15.36 points, or 0.4%, to end at 3,824.14.

The Dow Jones Industrial Average
DJIA,
-0.03%
shed 10.88 points, or less than 0.1%, to finish at 33,136.37.

The Nasdaq Composite
COMP,
-4.72%
fell 79.50 points, or 0.8%, ending at 10,386.98.

On Friday, the Dow Jones Industrial Average fell 74 points, or 0.22%, to 33,147, the S&P 500 declined 10 points, or 0.25%, to 3,840, and the Nasdaq Composite dropped 12 points, or 0.11%, to 10,466. The Nasdaq Composite fell 33.1% in 2022. The yearly declines for the three stock indices were the worst since 2008.

What drove markets After Wall Street’s S&P 500 index dropped nearly 20% in 2022, equity trading on Tuesday started with a modest pop with all three indexes opening higher, but that rally fizzled with the three benchmarks trading lower in the afternoon trade. Stocks closed well off their lows of the first trading session of 2023, but still finished in the red. Tesla shares
TSLA,
-12.24%
led the market lower, ending more than 12% lower to its lowest point in over two years after the electric carmaker delivered fewer vehicles than expected last quarter despite offering hefty incentives in its biggest markets. It’s the third straight quarter that deliveries have missed estimates and several analysts cut price targets on the stock Tuesday. Read also: Michael Burry of ‘Big Short’ fame expects another ‘inflation spike’ after recession rocks U.S. There’s the investor excitement that’s going to come with the start of a new year and a new chance at gains and opportunities, said Scott Sheridan, CEO of tastyworks, an online brokerage. However, the underlying “structural issues” — like high inflation and the ongoing war in Ukraine — are still there, he said. “I don’t think the market cares that it’s January 3rd. This is a continuation of the move we’ve been in, which is going to be a choppy move,” Sheridan said. For all new year goals of better-looking portfolio, Sheridan thinks the market “might not be ready fo …

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