US Market tumbles in broad selloff

The US stocks tumbled on Wednesday, 28 December 2022, dragging the tech-heavy Nasdaq to lowest closing level in over two years, meanwhile the S&P 500 and the Dow closed the significant below neutral line.

The weakness on the Wall Street was chiefly due to mixed economic data, rising COVID cases in China, the possibility of higher interest rates leading to a recession, and concerns about geopolitical tensions heading into 2023.

At the close of trade, the Dow Jones Industrial Average index declined 365.85 points, or 1.11%, to 32,875.71. The S&P500 index was down by 46.03 points, or 1.2%, to 3,783.22. The tech-heavy Nasdaq Composite Index dropped by 139.94 points, or 1.35%, to 10,213.29.

The Nasdaq has performed the worst of the three indexes, losing 34.7% this year as investors rotated out of growth stocks amid rising recession fears. The Dow and S&P 500 are on track to lose 9.5% and 20.6%, respectively.

All 10 sectors ended lower along with the S&P500 Index. Energy was the worst performing sector, falling 2.2%, followed by information technology (down 1.6%), real estate (down 1.6%), materials (down 1.5%), and communication services (down 1.5%) sectors.

Energy stocks also saw considerable weakness amid a decrease by the price of crude oil, moving notably lower along with airline, housing and steel stocks. EQT, APA and Marathon Oil were among the notable losers. Meanwhile, Southwest Airlines shares fell more than 5% as it canceled flights amid severe winter weather conditions.

ECONOMIC NEWS: report released by the National Association of Realtors showed pending home sales index tumbled by 4% to 73.9 in November after plunging by 4.7% to a revised 77.0 in October.

Among Indian ADR, Wipro declined 0.2% to $4.57, INFOSYS was down 0.4% at $17.96, HDFC Bank fell 0.3% to $67.55, and ICICI Bank fell 0.2% to $21.84, WNS Holdings added 1.2% to $80.21, and Tata Motors rose 0.2% at $23.31. Dr Reddy's labs added 1.1% to $51.72 and Azure Power Global added 0.3% to $4.08.

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