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U.S. stocks closed sharply lower on Wednesday as investors assessed fresh economic data amid growing concerns over economic growth in 2023 owing to steep interest rate hikes. All three major indexes ended in negative territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) slid 1.1% or 365.85 points to end at 32,875.71 points.
The S&P 500 plummeted 1.2% or 46.03 points to close at 3,783.21 points. Energy, real estate and technology stocks were the worst performers.
The Real Estate Select Sector SPDR (XRE) and the Technology Select Sector SPDR (XLK) each declined 1.6%. The Energy Select Sector SPDR (XLE) lost 2.2%. All 11 sectors of the benchmark index ended in negative territory.
The tech-heavy Nasdaq fell 1.4% or 139.94 points to close at 10,213.29 points.
The fear-gauge CBOE Volatility Index (VIX) was up 2.26% to 22.14. Decliners outnumbered advancers on the NYSE by a 3.77-to-1 ratio. On Nasdaq, a 1.97-to-1 ratio favored declining issues. A total of 8.59 billion shares were traded on Wednesday, lower than the last 20-session average of 11.3 billion.
Investors Worry About Slowing Economic Growth
Wall Street suffered once again on Wednesday on growing concerns over slowing economic growth in the coming months as the year comes to an end. Investors have almost given up hope on a year-end tech rally.
The Santa Claus rally period, which comprises the final five trading days of the year and the first two days of the new year, seems to be slipping away, with investors concerned about how the lifting of COVID-related restrictions in China will impact global markets and economies.
The Fed maintained its hawkish stance in its last policy meeting in December and made clear that it will continue hiking interest rates in 2023 as its fight against inflation is far from over. Investors are now bracing for a tough 2023 and are expecting several headwinds in the coming months as the year comes to a close.
As the year comes to a close, Wall Street is on track for its worst year since 2008. Among the three major indexes, the Nasdaq has so far been the worst performer, losing 34.7% so far this year. Tech stocks, which are sensitive to interest rate hikes, have suffered the most this year and Wednesday was no different.
Economic Data
In economic data released on Wednesday, the National Association of Realtors reported that pending home sales in the United States declined 4% in November for the sixth straight month.
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Stock Market News for Dec 29, 2022
U.S. stocks closed sharply lower on Wednesday as investors assessed fresh economic data amid growing concerns over economic growth in 2023 owing to steep interest rate hikes. All three major indexes ended in negative territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) slid 1.1% or 365.85 points to end at 32,875.71 points.
The S&P 500 plummeted 1.2% or 46.03 points to close at 3,783.21 points. Energy, real estate and technology stocks were the worst performers.
The Real Estate Select Sector SPDR (XRE) and the Technology Select Sector SPDR (XLK) each declined 1.6%. The Energy Select Sector SPDR (XLE) lost 2.2%. All 11 sectors of the benchmark index ended in negative territory.
The tech-heavy Nasdaq fell 1.4% or 139.94 points to close at 10,213.29 points.
The fear-gauge CBOE Volatility Index (VIX) was up 2.26% to 22.14. Decliners outnumbered advancers on the NYSE by a 3.77-to-1 ratio. On Nasdaq, a 1.97-to-1 ratio favored declining issues. A total of 8.59 billion shares were traded on Wednesday, lower than the last 20-session average of 11.3 billion.
Investors Worry About Slowing Economic Growth
Wall Street suffered once again on Wednesday on growing concerns over slowing economic growth in the coming months as the year comes to an end. Investors have almost given up hope on a year-end tech rally.
The Santa Claus rally period, which comprises the final five trading days of the year and the first two days of the new year, seems to be slipping away, with investors concerned about how the lifting of COVID-related restrictions in China will impact global markets and economies.
Energy stocks were a big drag on the S&P 500 on Wednesday as oil and natural gas prices fell sharply. Shares of Marathon Oil Corporation (MRO - Free Report) declined 3.9%, while APA Corporation (APA - Free Report) tumbled 5.2%. Marathon Oil has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
The Fed maintained its hawkish stance in its last policy meeting in December and made clear that it will continue hiking interest rates in 2023 as its fight against inflation is far from over. Investors are now bracing for a tough 2023 and are expecting several headwinds in the coming months as the year comes to a close.
As the year comes to a close, Wall Street is on track for its worst year since 2008. Among the three major indexes, the Nasdaq has so far been the worst performer, losing 34.7% so far this year. Tech stocks, which are sensitive to interest rate hikes, have suffered the most this year and Wednesday was no different.
Economic Data
In economic data released on Wednesday, the National Association of Realtors reported that pending home sales in the United States declined 4% in November for the sixth straight month.