Stock Market Today: Tesla, Apple Help Sink Nasdaq On First Trading Day Of 2023
U.S. stocks dipped Tuesday, dragged down by the plummeting share prices of Tesla and Apple and concern the Federal Reserve's continued rate hikes to stifle stubborn inflation.
The Dow Jones Industrial Average fell 10.88 points, or 0.03%, to close at 33,136.37. The S&P 500 fell 15.38 points, or 0.40%, to close at 3,824.12, and the Nasdaq Composite Index fell 79.50 points, or 0.76%, to close at 10,386.98.
Tesla shares plunged after it reported it delivered fewer vehicles than expected in the last three months of 2022. Tesla delivered 405,278 vehicles for the quarter, missing analysts' forecasts of 420,760 as compiled by Bloomberg News. Tesla (TSLA) shares dropped 12.24%, or $15.08 a share, to close at $108.10.
Apple stock fell after it was reported that the tech giant was cutting back production of MacBooks, watches and AirPods because of falling demand. Apple's (AAPL) share price fell $4.86, or 3.74% a share, to close at $125.07
Last year was the worst year for all three indexes since 2008 and snapped a three-year winning streak. The Dow lost about 9% for the year. The S&P plunged 19% and the tech-heavy Nasdaq tumbled 33% in 2022.
The Federal Reserve's aggressive rate hikes have weighed on investors throughout the year. There's concern the rate hikes will push the economy into recession.
Some stocks that fell Friday included Coca-Cola (COKE), which closed at $476.66, down $35.70, or 6.97%. Electric carmaker Rivian (RIVN) shares fell 5.91%, or $1.09 a share, to close at $17.34.
"A recessionary environment in 2023 could further hamper tech stock performance in the new year, as investors' thirst would increase for value-oriented companies and those with higher profit margins, more consistent cash flows, and robust dividend yields," Greg Bassuk, CEO of AXS Investments, wrote in a note to clients.
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