S&P 500 and NASDAQ Close Week on High, But Fall Lower Than Expectation

Thursday’s composite volume of the S&P 500 and NASDAQ indexes had risen.

But this rise was lower than expectations, and investors still suffered a loss. The primary reason has been the rumors about the upcoming recession.

The macroeconomic factors are not favorable at all for the trading markets. High inflation and high-interest rate hikes are very much on the cards.

Talk of the S&P 500. The index rose by 0.6% and closed at 3,844.82.

On the other hand, the NASDAQ index rose by 0.2% and closed at around 10,497.86.

The Dow Jones industrial index shows that its average closing range was 176.4, which accounts for a 0.2% rise compared to the previous mark.

All the major indexes were undulated by the start of December as the feds decided not to offer any protection against the inter rest hike and rising inflation.

How Investors Reacted to This Statement of the Feds

As the fed pointed out the worst macroeconomic indicators, investors feared upcoming economic circumstances.

Investors did two things; they immediately sold their shares. This high selling ratio creates panic in the market.

Moreover, investors also pulled back their investments from the stock markets. As a result, some of the biggest indexes have seen a rapid decline in their indexes.

However, the rumors that the market will perform better in 2023 have once more gained the investors’ trust.

As a result, investors have once more injected their money into the market. This has given much-needed support to some of the U.S. stock indexes.

But the current rise in S&P 500, NASDAQ, and Dow Jones is much lower than the expected recovery.

A Deeper Look into S&P 500

The economic indicators still show that investors are fearful of the upcoming recession, which is why the trade volume we relatively low.

Investing firm N&A said being an investor is the most difficult of the year 2022.

On one side, the feds threaten you by offering no protection. On the other side, poor macro indicators are waiting for you.

Regardless of how high the trade volume at the S&P 500 reaches, nothing can beat the economic indicators.

That is why ETF traders and stock investors are delaying their investment plans. Despite closing the week at a high, the index of the S&P 500 was down by 2.0% below the expected rise.

On the other hand, The NASDAQ Composite remained 2% lower than the expected gain.

Where NASDAQ and S&P 500 failed to meet expectations, the Dow Jones industrial index outperformed the market fear as it gained 0.9%. This mixed trend is likely to continue till the end of 2022, and by the start of 2023.

What Do Experts Say About the Future of the Stock Market?

Experts believe that the recent investors’ sentiment that the market will recover in 2023 is entirely based on the sentiment.

Technically speaking, the indicators for 2023 are very similar to 2022. The current economic crisis will accumulate and also enter 2023.

As 2023 will also have similar economic issues, how will the stock market outlook change?

Investors also emphasized that rather than convincing the investors that market sentiment will improve in 2023. It is better to put efforts into solving the current issues or tell the investors about smart ways to invest.

For instance, investment in penny stocks is a less risky option. Moreover, investors must be careful when investing in IT sector stocks as they are highly fluctuating.

On the other hand, Bloomberg published that recession has been investors’ biggest fear.  If the officials do not take concrete steps on how they are going to resolve this issue, the market will see further decline.

At this point, the market is cornered; to move into the center, the market needs strong support. The only way the market can earn investors’ trust is through strong economic indicators in the market’s favor.