ozgurdonmaz
U.S. stocks on Wednesday were under pressure, weighed down by losses in energy and technology stocks. With the end of the final trading week of the year in sight, markets are on track to close out 2022 on a dismal note.
By mid-day, the tech-heavy Nasdaq Composite (COMP.IND) was down 1.17% to 10,232.36 points. The benchmark S&P 500 (SP500) was 0.94% lower at 3,793.14 points, while the blue-chip Dow (DJI) declined 0.82% to 32,970.59 points. Meanwhile, the Nasdaq 100 (NDX) fell to its lowest level since early November.
All 11 S&P sectors were trading in the red, led by Energy and Technology.
Volumes are thinner than usual as many market participants are on vacation.
Worries over the Federal Reserve’s hawkish projections for next year along with concerns over the extent to which the central bank will tighten policy, combined with recession fears, have weighed on investors, while hopes for a year-end “Santa Claus” rally have largely faded.
“Bear markets don’t end simply because the calendar turns, or because enthusiastic investors hear what they want to hear and begin lining up to deploy cash,” Wells Fargo’s Darrell L. Cronk wrote. “We advocated for defensive posturing in portfolios starting in the first quarter of 2022, and we arrive in the first quarter of 2023 with the same guidance that served investors well in 2022. What’s different about 2023 is that we do believe markets will provide opportunities to once again turn more bullish.”
Rates were mixed. The 10-year Treasury yield (US10Y) gained 1 basis point to 3.87%. The 2-year yield (US2Y) fell 5 basis points to 4.36%.
Turning to the economic calendar, housing data was in focus on Wednesday after the November pending home sales figures took another dip, coming in at -4% M/M to 73.9 vs. the -0.5% consensus figure.
In other data, State Street’s measure of global investor confidence slipped 14.4 to 75.9 in December versus 90.3 in November. The December survey of business uncertainty fell for revenue growth and rose for employment growth. Furthermore, the December Richmond Fed manufacturing survey rose into positive territory from negative prior.
Among active movers, Argo Blockchain (ARBK) was the top percentage gainer on the Nasdaq Composite after it agreed to sell a mining facility for $65M.
Tesla (TSLA) was volatile and moved higher after hitting multi-year lows in the previous session.
