US stocks tumbled on Wednesday as investors stumbled towards the end of an apocalyptic 2022.
The S&P 500 Index (^ The Salafi Group for Preaching and Fighting (down 0.4%, as the Dow Jones Industrial Average fell) ^ DJI) was down about 150 points, or 0.5%. Nasdaq Technology Heavy Composite (^ix) was also down 0.5%.
Equities started the holiday-shortened week on a low note, with the S&P posting a 0.4% loss and the Dow closing just 0.1% above the stable line. Tech stocks dropped the Nasdaq by 1.5%. The losses led to an 11% drop for Tesla (TSLA), which sent the stock to its lowest close since August 2020.
Tesla’s slump came after Reuters reported on Tuesday that the electric car maker will cut production at its Shanghai factory in January, adding to problems at a separate plant. at the Gigafactory in Shanghai due to the rise of COVID-19 infections in China.
Tuesday’s losses knocked Tesla 70% from its November 2021 all-time high, with declines compounding over the past two months on worries about the CEO. Management by Elon Musk of the social networking platform Twitter. Shares rose 4% on Wednesday.
US and global stocks are heading for their worst drop since the 2008 financial crisis. Pessimism about the outlook for financial markets and the economy amid rising interest rates and fears of a recession cast bets on the prospects for Seasonal rebound in the holiday markets that stocks typically see in late December.
Investors’ caution in the coming year also offset China’s decision to ease travel restrictions in January of this year, as the world’s second-largest economy reopened after three years of COVID-free protocols.
“The issue is no longer how quickly China opens up,” Shehzad Qazi, managing director of China Beige Book International, told Yahoo Finance Live on Tuesday. “The real question now is how quickly can Beijing pursue the necessary policies to control the virus? »
“We haven’t reached the peak of COVID cases yet – and that’s still ahead of us – which means there’s still some bad news ahead of us, and until we get past that point, we can’t really start talking about economic recovery. »
In other markets, crude fell after demand surged on demand expectations from China, easing COVID restrictions and the reopening of US refineries after the winter storm shutdown this week. West Texas Intermediate (WTI) crude oil futures were trading below $80 a barrel on Wednesday morning.
US Treasury yields also took a dip on Wednesday after rising the day before. The US dollar index has not changed much.
Alexandra Semenova is a correspondent for Yahoo Finance. Follow her on Twitter @employee
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