This week of Wednesday the Dow index closed with lower points after cutting all the early day gains for the day along with the ongoing sale of all the Tech companies who have been continuing the feared sentiments in the stocks in the recent days until the reading for the year comes to the weekend pause.
The industrial average of Dow Jones dropped by 365 points which resulted in a 1.1 % drop Along with that the same day Nasdaq also showcase the same result with a drop of 1.1 % which is considered its lowest since October 9 this year. The S&P 500 also drop by 1.2 % on the same day.
The Tech giant Apple has been facing losses in recent times and the company’s Nasdaq listing has dropped up to 3%. The reason for this fall is connected with the disruptions in the labor shortages at Apple’s Foxconn maintenance production facility in China.
As per the reports of TrendForce, Apple will seem to have losses in its first quarter of 2023 against its sales and profits in 2022. this can be evaluated from the facts that Apple was able to sell 52 million units in 2022’s first quarter and it is expected that in the first quarter of 2023 Apple will be able to sell only 47 million units.
It is also seen that the energy sector and the oil prices also impacted the following market as the investors have been more keen on the oil market setting the rise of covid-19 cases and Beijing’s recent notifications of easing the endemic restrictions for all the Global operations. The stocks of Apple, Coterra Energy, and EQT AB Group seem to be the biggest loss makers for the day and they contributed to approximately 8% down for the stock market.
Stocks of airline companies are also shown a blow in their business in their prices in the news regarding the cancellation of airlines and travel across the world and some parts of the US. This can be analyzed from the fact that Southwest Airlines has been able to showcase a 5% drop in their prices as their flight cancellation continued and their normal operations also halted along with that the shares of American Airlines and Delta Air Lines also were down by approximately 1% in the US Stock Market.
Along with these prices of EV car maker company Tesla also dropped by 3% has the sentiments of Tesla Investors are still pressurized by the demands of Tesla cars in the present scenario. The researcher Baird cut mentioned their price target for Tesla stocks at $252 per share from the previous $316 per share mentioning the potential of free demand for Tesla cars in recent times.
Citing the reasons for increased interest rates by the Federal Reserve and the possibility of the US recession stock market is seem to be having low volume and the possible losses this year-end phase for the US stock market. Overall with all these losses S&P 500 seems to be having the biggest loss-making index since the financial crisis of 2008.
As per the analysis of Well Fargo, the financial market will seem to be having a low phase during the first quarter of 2023 setting the possibility of a recession, but soon the market will bounce back and rebound as the investors will be able to anticipate the recovery option very soon in that phase.
In all the situations the main indexes of was it ended up with a beaker move on Wednesday and the Nasdaq was hitting its closest low in the year 2022 this week as the investors are concerned about the economic data and the rise of covid cases in China along with Global stations possibility in the first quarter of 2023.
The Nasdaq Composite ended up at 10,213.288 points which is considered its lowest mark in the bear market conditions from November 2021 in which it was able to fetch one of its highest indexes in the US market. Before the recent low Nasdaq was seen to be closing at its lowest point in July 2020, this year it show its closest in October with 10,321.388 points.
In all the situations the usual rally at the year-end occasion has not been visible this year ear and the grinch respective has been showing up by all the US investors at the end of this year. December is considered a strong month for all the really of S&P 500 index after Christmas but this has been partially showcased only after 18th of December since its biggest losses in 1950.