U.S. stocks end lower on mixed economic data, recession fears - Reuters

Dec 28 (Reuters) - Wall Street's main indexes closed little connected Wednesday, arsenic investors grappled with mixed economical data, rising COVID cases successful China, and geopolitical tensions heading into 2023.

"There was nary Santa rally this year. The Grinch showed up this December for investors," said Greg Bassuk, main enforcement astatine AXS Investments successful Port Chester, New York.

December is typically a strong period for equities, with a rally successful the week betwixt Christmas and New Year's. The S&P 500 scale (.SPX) has posted lone 18 Decembers with losses since 1950, Truist Advisory Services information show.

"Normally a Santa Claus Rally is sparked by hopes of factors that volition thrust economical and marketplace growth," Bassuk said. "The antagonistic and mixed economical data, greater concerns astir COVID reemergence and ongoing geopolitical tensions and ... each of that besides translating Fed argumentation is each impeding Santa (from) showing up astatine the extremity of this year."

All 11 of the S&P 500 (.SPX) assemblage indexes fell connected Wednesday, with vigor stocks (.SPNY) arsenic the biggest loser.

Investors person been assessing China's determination to reopen its COVID-battered system against the backdrop of a surge successful infections.

"With this existent operation of rising cases with an opening up of China restrictions, we're seeing that investors are acrophobic that the ramifications are going to dispersed done galore antithetic industries and sectors arsenic it did successful the earlier COVID period," Bassuk said.

The benchmark S&P 500 (.SPX) is down 20% year-to-date, connected way for its biggest yearly nonaccomplishment since the fiscal situation of 2008. The rout has been much terrible for the tech-heavy Nasdaq Composite (.IXIC), which closed astatine the lowest level since July 2020.

While caller information pointing to an easing successful inflationary pressures has bolstered hopes of smaller involvement complaint hikes by the Federal Reserve, a choky labour marketplace and resilient American system person spurred worries that rates could enactment higher for longer.

Markets are present pricing successful 69% likelihood of a 25-basis constituent complaint hike astatine the U.S. cardinal bank's February gathering and spot rates peaking astatine 4.94% successful the archetypal fractional of adjacent year. .

Shares of Tesla Inc (TSLA.O) roseate successful choppy trade, aft hitting its lowest level successful much than 2 years a time earlier. The banal is down astir 69% for the year.

Southwest Airlines Co (LUV.N) dropped a time aft the bearer came nether fire from the U.S. authorities for canceling thousands of flights.

According to preliminary data, the S&P 500 (.SPX) mislaid 46.20 points, oregon 1.21%, to extremity astatine 3,783.05 points, portion the Nasdaq Composite (.IXIC) mislaid 138.33 points, oregon 1.34%, to 10,214.89. The Dow Jones Industrial Average (.DJI) fell 367.60 points, oregon 1.11%, to 32,873.96.

Reporting by Echo Wang successful New York; Additional reporting by Amruta Khandekar and Ankika Biswas successful Bengaluru; Editing by Sriraj Kalluvila, Anil D'Silva and Richard Chang

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