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US markets end mostly lower on Tuesday

28 Dec 2022 Evaluate

The US markets ended mostly in red, with Nasdaq settling cut of around one and half percent, on Tuesday on lingering concerns about the economic outlook following recent indications the Federal Reserve plans to continuing raising interest rates. A light economic calendar also kept traders on the sidelines, although reports on pending home sales, weekly jobless claims and Chicago-area business activity may attract attention in the coming days. On the sectoral front, airline stocks moved sharply lower on the day, with the NYSE Arca Airline Index plunging by 2.3 percent amid continued flight cancellations due to the severe winter storm. Southwest Airlines (LUV) posted a steep loss following news the Department of Transportation is investigating the company’s unacceptable rate of cancellations.

Biotechnology and semiconductor stocks also saw significant weakness, contributing to the sharp drop by the tech-heavy Nasdaq. Reflecting the weakness in the sectors, the NYSE Arca Biotechnology Index and the Philadelphia Semiconductor Index slid by 1.9 percent and 1.8 percent, respectively. On the other hand, gold stocks moved sharply higher on the day, driving the NYSE Arca Gold Bugs Index up by 2.5 percent. The rally by gold stocks came amid a notable increase by the price of the precious metal, with gold for February delivery climbing $18.90 to $1,823.10 an ounce.

Dow Jones Industrial Average rose 37.63 points or 0.11 percent to 33,241.56. However, Nasdaq fell 144.64 points or 1.38 percent to 10,353.23 and S&P 500 was down by 15.57 points or 0.4 percent to 3,829.25.

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MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

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