Stock futures were lower in overnight trading on Tuesday after that Wall Street started 2023 on a sour note.
Futures tied to the Dow Jones Industrial Average were down 0.04%, or 14 points, while S&P 500 and Nasdaq 100 futures were flat.
The overnight moves followed a down session for stocks as concerns about rising interest rates, high inflation and recession fears dashed hopes that Wall Street could start the new year on a positive note.
In regular trading Tuesday, the Nasdaq lost 0.76 percent, while the Dow Jones Industrial Average and the S&P 500 were down 0.03 percent and 0.4 percent, respectively. Tesla shares tumbled more than 12%. number of deliveries that do not meet expectationswhile Apple fell 3.7% on reports of production cuts.
Six of the S&P’s 11 major sectors closed lower, led by energy. The sector was the best performer in 2022 as oil prices lifted energy stocks. Communication services gained about 1.4%, led by Meta Platforms and Walt Disney.
“US stocks failed to hold on to earlier gains as restrictive policy and recession fears remained the focus of investors’ attention,” Oanda senior market analyst Ed Moya wrote in a note to clients on Tuesday. “The discount buying sparked another bear market recovery that didn’t last long at all.”
Many investors hoped the market would recover after the underlying averages posted their worst year since 2008. The Federal Reserve and its tightening plan hang over markets for the near term, along with fears of a looming recession.
Investors will get a better idea of what Fed members are thinking on Wednesday afternoon when minutes from the central bank’s latest meeting are released. Earlier in the day, data from the Job Openings and Labor Turnour Survey, or JOLTS, and ISM manufacturing data are due out.
Friday’s December jobs report will also be closely watched as it is the last report on the labor market before the Fed’s February meeting.
“It’s too early to start betting on a Fed pivot this year, and that should make for a tough environment for stocks,” Moya said.
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