Stocks open higher on first trading day of 2023

Traders on the floor of the NYSE, October 21, 2022.

Source: NYSE

Stocks rose on Tuesday as Wall Street tried to start the new year on a strong note.

The Dow Jones industrial average rose 75 points, or 0.23%. The S&P 500 rose 0.45% and the Nasdaq Composite added 0.88%. Shares of Tesla fell 5% following disappointing fourth-quarter deliveries.

Investors are looking for signs that the global economy will continue to recover in 2023 and stocks will lift as issues weigh on markets in 2022. While there are fears that Federal Reserve rate hikes to control high inflation could push the US economy into recession, it could lead to a pause in rate hikes or a prelude to cutting rates later in the year. To increase stakes.

“As we continue to see the ‘glass half full’ at the end of ‘free money’ and overstimulation of the economy, better times could come for both the stock and bond markets as the New Year progresses,” wrote John Stoltzfus, chief investment strategist at Oppenheimer, in a Tuesday note.

History also shows that The US stock market is rebounding after several years. In fact, the S&P 500 has, on average, gained 15% the following year after losing more than 1%.

The major averages ended 2022 with their worst annual losses since 2008, snapping a three-year winning streak. The Dow ended the year down 8.8%, 10.3% off its 52-week high. The S&P 500 has lost 19.4% for the year and is off more than 20% from its record high. The tech-heavy Nasdaq fell 33.1% last year.

See also  Extreme heat wave in South Asia 'a sign of things to come'

Investors get a set of data in the first trading week of the year, which gives them more information about the state of the economy. First, the S&P Global Manufacturing PMI and Construction Spending will be released on Tuesday at 9:45 a.m. and 10 a.m. ET.

Wednesday’s jobs and labor turnover survey, known as JOLTS, will be released in the morning and minutes of the central bank’s latest policy meeting will come out in the afternoon.

They are looking forward to Friday’s December jobs report, the final employment report the central bank must consider before its next meeting on February 1. There are also several speeches by central bankers on Thursday and Friday.

Leave a Reply

Your email address will not be published.