The New York Stock Exchange ended its first session of 2023 in the red, continuing the gloomy trend of the end of the previous year, weighed down in particular on Tuesday by the fall in shares of Tesla and Apple.
The Dow Jones index fell 0.03% to 33,136.37 points, the tech-heavy Nasdaq lost 0.76% to 10,386.98 points and the S&P 500 fell 0.40% to 3824.14 points, according to the final results.
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Wall Street had briefly started the session higher after a long New Year's weekend, looking set to rebound from the worst year since 2008 for the stock market.
But equities could not maintain this positive momentum, "
as the restrictive policy
" of the American central bank (Fed) "
and fears of recession remained at the center of the concerns of the investors
", commented Edward Moya, analyst at 'Oanda.
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The hunt for bargains, motivated at the start of the session by low share prices, fizzled out and “
it is too early to start betting on a change in attitude from the Fed this year
”, continued this analyst.
It will make the environment difficult for equities
” at the start of the year, he added.
Bond rates, which had ended 2022 at 3.87% for 10-year US Treasury bills, fell sharply to 3.76% at 9:30 p.m. GMT.
The gloomy mood of operators focused on Tesla shares, which again fell drastically to reach a new low since August 2020. The title of the electric vehicle manufacturer, which has already melted by 65% last year , fell another 12.24%, ending at $108.10.
The action was sharply punished as the Elon Musk-led group announced disappointing deliveries for the whole of last year on Monday.
The brand delivered 1.31 million electric vehicles in 2022, which is a record and a 40% year-on-year jump, but it remains below its own forecasts and Wall Street expectations.
Fourth-quarter figures missed target due to continued logistics issues, demand concerns and increased competition from other manufacturers
,” Schwab analysts said.
In the last quarter alone, deliveries stood at 405,000 vehicles (+18%), while analysts expected 418,000.
A JPMorgan analyst further downgraded its earnings projections for the final quarter as well as the full year 2023, further depressing the stock.
Read alsoTesla: disappointing deliveries in 2022
Apple also made a bad impression, beating the Nasdaq, while the title of the apple firm fell 3.74% to 125.07 dollars.
Suddenly, the valuation of this mega-cap of the tech sector, which had exceeded 3,000 billion dollars at the start of 2022, fell back below 2,000 billion dollars for the first time since last May.
The title meanwhile is at its lowest since June 2021.
Apple seems to be facing delays in the delivery of its iPhone 14 Pro made in China.
Investors are also concerned about rising interest rates, which may weigh on the cost of the manufacturer's investments.
A large half of the S&P sectors ended in the red, led by energy (-3.62%) which followed the sharp decline in crude oil prices, due to concerns about energy demand in the world as the spread of Covid-19 endangers China's economic reopening.
Spared, the communication sector was on the rise, with in particular a jump of 3.66% from Meta, the parent company of Facebook.
On Wednesday, the General Electric conglomerate will ratify the split of its health branch GE HealthCare and introduce it on the stock market.
Investors will also watch for the minutes of the Fed's latest monetary meeting.