U.S. stocks drop on recession fears, Nasdaq closes at new bear market low

U.S. stocks drop on recession fears, Nasdaq closes at new bear market low
# 29 December 2022 10:14 (UTC +04:00)

Wall Street's main indexes ended weaker on Wednesday, with the Nasdaq hitting a 2022 closing low, as investors grappled with mixed economic data, rising COVID cases in China, and geopolitical tensions heading into 2023, APA reports citing Reuters.

The Nasdaq Composite ended at 10,213.288, the lowest since the bear market began in November 2021 after the index hit a record high. The last time the Nasdaq ended lower was in July 2020. Its previous closing low for 2022 was 10,321.388 on Oct. 14.

December is typically a strong month for equities, with a rally in the week after Christmas. The S&P 500 index has posted only 18 Decembers with losses since 1950, Truist Advisory Services data show.

Shares of Tesla Inc gained 3.3% in choppy trade, a day after hitting the lowest level in more than two years. The stock is down nearly 69% for the year.

Southwest Airlines Co dropped 5.2% a day after the carrier came under fire from the U.S. government for canceling thousands of flights.

Apple Inc, Alphabet Inc and Amazon.com Inc fell between 1.5% and 3.1% as the U.S. 10-year Treasury yield recovered from a brief fall to rise for a third straight session.

The Dow Jones Industrial Average fell 365.85 points, or 1.1%, to 32,875.71; the S&P 500 lost 46.03 points, or 1.20%, at 3,783.22; and the Nasdaq Composite dropped 139.94 points, or 1.35%, to 10,213.29.

Declining issues outnumbered advancers on the NYSE by a 3.77-to-1 ratio; on Nasdaq, a 1.97-to-1 ratio favored decliners.