US Stock Market Ends Low Before Heading to 2023

United States – The United States or the US stock market ends at a low level as investors look forward to 2023. Nasdaq trades down at 1.4%, while Treasury yields increase.

Stocks in the US stock market ended mostly lower on Tuesday, December 27, as investors came back from the three-day weekend. The bulls held out for a seasonal “Santa Claus rally” after the decision of China to lift the quarantine requirements of COVID-19 for arriving travelers. It aims to raise hopes that the second-biggest economy might recover next year.

The Dow Jones Industrial Average boosted 0.1% or 37.63 points at 33,241.56 as per the Dow Jones Market Data. S&P 500 dropped 0.4% or 15.57 points at 3,829.25, along with Nasdaq Composite at 1.38%, which dropped 1.4% or 144.64 points at 10,353.23.

The Dow Jones earned 1% last week while Nasdaq and S&P dropped for three straight weeks. The S&P 500 decreased by about 6% in December while Nasdaq and Dow decreased by around 8.5% and 4% respectively. These are the most significant declines in the US stock market since September. The major averages are going for their most terrible yearly performance since 2008.

Friday, December 23, marked the beginning of the “Santa Clause” rally. It’s the final five exchanging days of the calendar year, along with the first two exchanging days of the new year. That stretch made profits for stock, yet not a success to do so is frequently read as a pessimistic indicator.

Investors drew some positivity from information that China will lift its quarantine requirements for travelers next year, in January 2023. Within 48 hours, travelers will still need to show a negative COVID test. However, it will no longer require isolation for five days in a credited hotel, along with another five days at home.

The boosted activity in China might be a mixed blessing on the inflation outside, as per SPI Asset Management’s managing director, Stephen Innes.

Innes stated that the good news was about the subsiding inflation as China repeats its role as a distributor of low-cost goods internationally. The bad news is that the demand in China for raw materials will increase prices as growth hastens in Q1.

The price of gold jumped to its highest point in six months on December 27, Tuesday. The price increase was after the reviving plan of China, which counted on the dollar. DXY or the ICE US Dollar Index decreased by 0.2%, yet it’s a gauge of the strength of the dollar compared to a hamper of big currencies.

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