Nasdaq slips to two-month lows as tech wreck continues

By Yasin Ebrahim

Investing.com --The Nasdaq slipped to more than two-month lows Wednesday, as investors continued to ditch tech stocks with just days to go until the trading year comes to a close.

The Nasdaq fell 1.1% to its lowest level since Oct. 13. The S&P 500 fell 0.8%, the Dow Jones Industrial Average slipped 0.7% or 216 points.

Apple (NASDAQ:AAPL) led the selling in tech, falling more than 2%, as iPhone supply shortage worries persist amid labor shortages at Foxconn's main production facility in Zhengzhou, China.

Research firm TrendForce cut its estimate on iPhone shipments for 2022 and the first quarter of 2023. The research firm said it expects 47 million units were shipped in Q1, down from a previous estimate of 52M.

Energy also played a role in broader market meltdown as oil prices were dragged lower as investors weigh up the tug of war on demand between rising COVID-19 cases that are restricting activity and Beijing's recent move to ease pandemic restrictions.

APA (NASDAQ:APA), CTRA (NYSE:CTRA), and EQT (NYSE:EQT) were among the biggest losers with the latter down more than 4.2%.

Industrials, meanwhile, dealt a blow by weakness in airline stocks amid a string of cancellations in the wake of a severe winter storm that has brought travel across parts of the U.S. to a standstill.

Southwest Airlines (NYSE:LUV) fell 3% after warning that it would continue to cancel flights until it is able to resume normal operations. AAL (NASDAQ:AAL) and DAL (NYSE:DAL) were down more than 1%.

In other news, Tesla (NASDAQ:TSLA) traded just about 2% higher after its rebound from a fresh 52-week low ran out of steam. Baird cut its price target on the EV stock to $252 per share from $316, citing "potential" for weakening demand.

The latest slide on Wall Street, albeit on lower trading volumes, puts stocks on a firmer course to close out the year with a loss, "due to higher interest rates and the increasing probability of a U.S. recession," Wells Fargo said in a note.

The S&P 500 is set for its biggest yearly loss since the financial crisis of 2008.

Fears of a recession will continue to hang over market in early 2023, Well Fargo adds, but believes "that equity markets will rebound later in the year as investors anticipate a recovery."