Stocks open higher on the first trading day of 2023

Traders on the floor of the New York Stock Exchange, October 21, 2022.

Source: NYSE

Stocks rose on Tuesday as Wall Street tried to start the new year on a strong note.

The Dow Jones Industrial Average jumped 237 points, or 0.72%. The S&P 500 rose 1.00% and the Nasdaq Composite gained 1.37%. Tesla shares fell 6.6% after disappointing fourth-quarter deliveries.

Investors are looking for signs that the global economy will continue to recover in 2023 and raise stocks as the problems that affected the markets recede in 2022. While there are concerns that raising interest rates by the Federal Reserve to tame high inflation could push the US economy into recession It would also likely lead to a pause in rate increases or a pivot to lower interest rates in the latter part of the year, which could trigger a recession. stock promotion.

“We continue to see ‘the glass half full’ as the end of the period of ‘free money’ and over-stimulation of the economy suggests that better times can await the stock and bond markets as the new year progresses,” wrote John Stoltzfus. Oppenheimer’s chief investment strategist, in a note on Tuesday.

History also shows file The US stock market tends to rebound after years of decline. In fact, the S&P 500 rebounded, on average, by 15% in the following year after a year in which it lost more than 1%.

The major averages closed out 2022 with their worst annual losses since 2008, snapping a three-year winning streak. The Dow finished the year down about 8.8%, 10.3% from its 52-week high. The S&P 500 lost 19.4% for the year and remains less than 20% off its high. The Nasdaq, which specializes in technology, is down 33.1% last year.

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Investors get a batch of data in the first trading week of the year that will provide more information about the state of the economy. The first is S&P’s global manufacturing PMI and construction spending, due out at 9:45 AM and 10 AM ET on Tuesday.

Wednesday is a big day with the Job Opportunities and Employment Turnover Survey, known as JOLTS, due for release in the morning and minutes from the Federal Reserve’s latest policy meeting due for release in the afternoon.

They also look ahead to the December jobs report on Friday, which is the final employment report the Fed will have to consider before its next meeting on February 1. There are also several speeches by the Fed Chairs scheduled for Thursday and Friday.

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