The optimism quickly disappeared from Wall Street on the first trading day of the year

The optimism quickly disappeared from Wall Street on the first trading day of the year

Both the Nasdaq and New York stock exchanges were closed on Monday, as a result of the New Year’s celebration in the United States.

In the hours before the exchanges reopened for 2023, derivatives trading showed that many central indices were poised to rally when the exchanges opened at 15.30 Norwegian time. The upbeat mood quickly turned, and this is how the main indicators look at 17:30 NST:

  • The broad S&P 500 index fell 0.7 percent.
  • The Dow Jones index, which includes major industrial companies, fell 0.5 percent.
  • The main Nasdaq index, which features technology, also fell 1 percent.

Investor optimism was based on what is seen as positive news from China, where Corona restrictions have been eased. However, fears of rising interest rates and a recession again reached Wall Street investors.

The S&P 500 fell less than 20 percent last year, thus posting the worst decline since the 2008 financial crisis. The Nasdaq, on the other hand, has lost a third of its value.

Fed meeting and jobs numbers

A short four-day week on US stock exchanges may be marked by interest rate signals from the US central bank, when minutes from the December meeting are released on Wednesday, as well as government employment numbers on Friday.

And while the stock market as a whole may be affected by these events, Tesla will likely once again take its place as one of the individual stocks getting the most attention — as it often has in 2022.

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Trades before the exchange opened indicated the stock would drop more than four percent. The result was much worse.

Tesla stock begins the new trading year with a decline of 13.2 percent, the lowest level since fall 2020.

Much of the negative interest is due to reports from the fourth quarter, when Tesla set a new record for the number of cars delivered. In total, Tesla shipped more than 405,000 vehicles, which is up 30 percent from the fourth quarter of 2021, but still about 5 percent below the average analyst estimate.

Wedbush analyst Daniel Ives Write in a note The Cinderella Adventure is over for Tesla.

Last year, Tesla stock closed at $123.18 after losing 65 percent of its market value over the year. You have to go back to late summer 2020 to find equivalent exchange rates for Tesla.(Terms)Copyright Dagens Næringsliv AS and/or our suppliers. We’d like you to share our statuses using links that lead directly to our pages. Reproduction or other use of all or part of the Content may be made only with written permission or as permitted by law. For additional terms look here.

Dalila Awolowo

Dalila Awolowo

"Explorer. Unapologetic entrepreneur. Alcohol fanatic. Certified writer. Wannabe tv evangelist. Twitter fanatic. Student. Web scholar. Travel buff."

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