Apple, Tesla shares drag down Wall Street
Business
Experts predict benchmark rate to increase by 25 basis points and peak at 4.98 percent by June
(Reuters) - The biggest drags on Wall Street s main indexes on the first trading day of 2023 were Tesla and Apple while investors remained concerned about the Federal Reserve s trajectory of interest rate hikes.
After missing Wall Street expectations for fourth-quarter deliveries shares of Tesla Inc (TSLA.O) fell 12 percent to its lowest level since August 2020.
After a report from Nikkei Asia indicated weakening demand Apple Inc. (AAPL.O) shares fell 3.7 percent, with the iPhone manufacturer reaching its lowest level since June 2021.
Energy sector (.SPNY) which saw incredible gains in 2022 finished the year s first trading day down 3.6 percent as oil prices plummeted.
Following the Fed s quickest pace of interest rate increases since the 1980s to combat decades-high inflation major US market indices saw their greatest yearly losses since 2008 in 2022.
The S&P 500 (.SPX) dropped 15.36 points; the Dow Jones Industrial Average (.DJI) dropped 10.88 points and the Nasdaq Composite (.IXIC) slid 79.50 points.
Money market investors have been predicting that the benchmark rate will increase by 25 basis points to 4.50 percent - 4.75 percent in February and peak at 4.98 percent by June with a 68 percent likelihood that the Fed would do so.
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