US: Stocks tumble again, adding to 2022 losses

WALL Street stocks fell on Wednesday as markets weighed the odds for further equity losses as end of the “bear market” of 2022 comes into view.

After a positive start to the day, US indices slid into the red, adding to losses later in the day amid light holiday-season trading volumes.

Analysts also cited end-of-the-year selling by investors who look to record a loss for tax purposes. “We are in a bear market,” said Adam Sarhan of 50 Park Investment. “The good news is the market valuation has gone down significantly over the last six to 12 months and that sets the stage for the next bull market.

“However there is still a lot more value compression that can occur before we get to the end of this bear market.”

The Dow Jones Industrial Average finished down 1.1 per cent at 32,875.71. The broad-based S&P 500 shed 1.2 per cent to 3,783,22, while the tech-rich Nasdaq Composite Index dropped 1.4 per cent to 10,213.29. Losses were broad-based, but large technology shares suffered more than others. Apple dropped 3.1 per cent, Netflix 2.6 per cent and Google parent Alphabet 1.7 per cent. Southwest Airlines dropped another 5.2 per cent, adding to Tuesday’s rout as the US carrier reels from operational problems following a bad winter storm. US-traded Chinese stocks fell amid worries over the spread of Covid-19 in China after it pivoted away from strict safety protocols. Alibaba dropped 3.0 per cent while JD.com and Baidu both lost more than 4.0 per cent. AFP