U.S. stocks drifted lower Tuesday to kick off the new year, pulled down by heavyweight names like Tesla and Apple.
Shares in Tesla closed down 12% after hitting their lowest level since August 2020, while Apple sank nearly 4% on a new forecast citing weaker demand. By Tuesday’s close, the Dow and S&P 500 had fallen slightly, while the Nasdaq dropped 80 points. In energy markets, Brent crude fell 4% to $82 a barrel, the steepest one-day decline since September. Despite falling oil prices, the TSX added 59 points, buoyed by rising gold prices, which approached US$1,850 per ounce.
U.S. stocks registered modest gains Wednesday, as investors surveyed mixed economic data. Although U.S. manufacturing activity slowed to its lowest level since May 2020, U.S. labor demand remained strong in November and December, according to the U.S. Labor Department. Meanwhile, the release of the Fed’s latest minutes from its last meeting reaffirmed its commitment to higher rates, which helped pare gains in late trading. By Wednesday’s close, the Dow was up 133 points, the S&P 500 added 29, and the Nasdaq rose 72. In Canada, the TSX hit its highest closing level in nearly three weeks, up 145 points, thanks largely to gold-mining shares.
U.S. stocks fell Thursday, as strong labor-market data reinforced the case for the Fed to keep rates high in the fight against inflation. That was especially bad news for the Nasdaq, which shed roughly 1.5% by Thursday’s close, while the Dow and S&P 500 surrendered a bit over 1% each. In Canada, the TSX also lost ground, dropping 82 points on mining and tech weakness.
Looking back on 2022, it was an especially painful year for equities. The S&P 500 dropped 19.4%, while the Nasdaq fell 33%, as growth stocks were continually battered by rising rates. Meanwhile, losses for the Dow and TSX were a bit more modest, at 8.8% and 8.7%, respectively.
U.S. Indexes Lose Ground; TSX Up Slightly
For the three trading days covered in this report, the Dow lost 217 points to close at 32,930, the S&P 500 dropped 31 points to settle at 3,808, while the tech-heavy Nasdaq sunk 161 points to close at 10,305. In Canada, the TSX gained 122 points to end at 19,507.
source https://rosenbergdri.ca/markets-struggle-for-direction-in-first-week-of-2023/
Dri Financial Group 