The Dow Jones Industrials stumbled 207.64 points to pause for noon at 32,939.61
The S&P 500 skidded 34.47 points at 3,805.03
The NASDAQ Composite Index dumped 132.93 points to 10,333.55.
The major averages closed 2022 with their worst annual losses since 2008, snapping a three-year win streak. The Dow ended the year down about 8.8%, and 10.3% off its 52-week high. The S&P 500 lost 19.4% for the year and sits more than 20% below its record high. The tech-heavy NASDAQ tumbled 33.1% last year.
Of course, there may be brighter days ahead. History also shows the U.S. stock market tends to rebound after down years. In fact, the S&P 500 has, on average, rebounded by 15% in the next year following a year where it lost more than 1%.
Shares of Tesla and Apple both slipped, weighing on the broader market and carrying forward a main theme from 2022, when the technology sector was hit hard as the Federal Reserve raised rates to fight inflation. Tesla fell more than 12% following disappointing fourth quarter deliveries and Apple shed more than 3% on reports that it will cut production due to weak demand.
The theme may continue in 2023 as the central bank is poised to continue to hike interest rates in the coming months, stoking fears that the U.S. economy may fall into a recession.
Prices for the 10-year Treasury gained ground, lowering yields to 3.80% from Friday’s 3.88%. Treasury prices and yields move in opposite directions
Oil prices dropped $2.91 to $77.35 U.S. a barrel.
Gold prices heightened $8.70 to $1,834.90 U.S. an ounce.