Stocks close lower on Wall Street, adding to recent losses

Stocks in the US closed lower on Tuesday afternoon after the long bank holiday weekend, adding to the market’s recent losses as Wall Street counts down the final days of a painful year for investors.

A decline in technology companies, automakers and airlines weighed on the market, erasing gains in energy stocks and other sectors.

Trading volume on the New York Stock Exchange is low as the year comes to a close.

Trading volume on the New York Stock Exchange is low as the year comes to a close.Credit:AP

The S&P 500 Index fell 0.4 percent, the Dow Jones Industrial Average rose 0.1 percent and the tech-heavy Nasdaq Composite lost 1.4 percent.

Market watchers said on Tuesday the Australian stock market would be a “coin toss” at open due to the volatility global markets have been seeing lately. Although S&P/ASX200 futures on Dec. 23 pointed to a 0.7 percent drop, market watchers were optimistic that we were seeing a possible rally driven by the usual “Santa Claus rally” that usually occurs in recent weeks days of the year can be observed.

However, experts also said Australia was likely to keep pace with US markets, causing the local bourse to open lower this morning after the long Christmas weekend.

Trading in financial markets is expected to be relatively soft this holiday-shortened week as investors look ahead to 2023 after a gloomy year for equities.

Uncertainty over how far the Federal Reserve and other central banks would go to combat the highest inflation in decades has kept investors on edge. The Fed has raised interest rates seven times this year and has announced further rate hikes for 2023, although the pace of price hikes has slowed.

High interest rates, which are weighing heavily on stock and other investment prices, have fueled fears that the world’s largest economy could slow too sharply and slide into recession next year.

The benchmark S&P 500 index hit an all-time high in early January but is now down nearly 20 percent for the year. The tech-heavy Nasdaq is down almost 34 percent.

https://www.smh.com.au/business/markets/stocks-close-lower-on-wall-street-adding-to-recent-losses-20221228-p5c927.html?ref=rss&utm_medium=rss&utm_source=rss_business Stocks close lower on Wall Street, adding to recent losses

Brian Lowry

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