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U.S. stocks turn lower to start a new year of trading

Published 04/01/2023, 02:32 am
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By Liz Moyer

Investing.com -- U.S. stocks were off to a slow start in the new year as investors await this week’s minutes of the Federal Reserve’s last meeting.

At 9:57 ET (14:57 GMT), the Dow Jones Industrial Average was down 107 points or 0.3% , while the S&P 500 was down 0.2% and the NASDAQ Composite was flat.

Stocks ended 2022 with their worst showing since 2008 as interest rates rose throughout the year, pressuring once high-flying growth and big tech stocks.

The Fed has been on a campaign to stop inflation, embarking on the fastest pace of interest rate increases in decades, and it hasn’t finished yet. At December’s meeting, the central bank indicated rates would continue to rise until it was satisfied its mission to tame price increases was completed.

The S&P lost more than 19% last year, while the tech-heavy Nasdaq fell 33%.

Investors are eager to put the year in the rearview mirror and are hoping economic data this week can help push them forward. On Friday, the jobs report for December is due, and data on manufacturing is expected this week as the Fed minutes arrive.

The market expects the Fed to raise its policy rate by a quarter of a percentage point when it next meets in February, which would be a slower pace than recent rate moves but still on an upward trajectory.

Shares of electric vehicle maker Tesla Inc (NASDAQ:TSLA) fell more than 9% on Tuesday, after falling 65% for 2022, after it reported lower-than-expected deliveries for the quarter and year.

Oil fell. Crude Oil WTI Futures was down 0.9% to $79.53 a barrel and Brent Oil Futures crude was down 0.8% to $85.22 a barrel. Gold Futures was up 1.2% to $1,848.

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