recessionary concerns again top the agenda underpinned by high inflation and rising interest rates us stocks were trading lower tuesday starting 2023s first trading session with an all too familiar 2022 pattern of volatile moves that trend downward amid worries about high inflation and a possible recession how are stocks are trading on friday the dow jones industrial average fell 74 points or 022 to 33147 the sp 500 declined 10 points or 025 to 3840 and the nasdaq composite dropped 12 points or 011 to 10466 the nasdaq composite fell 331 in 2022 the yearly declines for the three stock indices were the worst since 2008 after wall streets sp 500 benchmark dropped nearly 20 in 2022 equity investors appeared determined on tuesday to start the new year of trading on a positive note it started with a modest bang where all three indices opened higher at the sessions start but that pop fizzled and now the benchmarks are trading lower tesla sharestsla led the market lower falling more than 10 after the electric carmaker delivered fewer vehicles than expected last quarter despite offering hefty incentives in its biggest marketsits the third straight quarter that deliveries have missed estimates and several analysts cut price targets on the stock tuesday on the one hand theres the investor excitement thats going to come with the start of a new year and a new chance at gains and opportunities said scott sheridan ceo of tastyworks an online brokerage on the other hand the underlying structural issues  like high inflation and the ongoing war in ukraine  are still there he said i dont think the market cares that its january 3rd this is a continuation of the move weve been in which is going to be a choppy move that goes lower sheridan said for all new year goals of betterlooking portfolio sheridan said the market might not be ready for the bold move people are hoping for market consolidation is a healthy response ahead of whenever an upswing materializes he said the near term volatility could present good trading opportunities but for longer term investors there might be some rough spots read also michael burry of big short fame expects another inflation spike after recession rocks us indeed the international monetary fund greeted the new year with a warning that a third of the global economy will suffer recession in 2023 a downturn that will likely trim corporate profits in addition a burst of fresh strength in the us dollar on tuesday  a common reaction to global economic slowdown worries  was likely to further crimp earnings of us multinationals still julian emanuel  strategist at evercore isi reckoned that such concerns dont necessarily mean stocks cant rally forecasting an earnings recession in 2023 to accompany the economic recession that now seems inevitable along with a 2023 year end sp 500 price target of 4150 would seem impossible he said in a note to clients yet not only is there a long history of earnings downstocks up years 1970 1982 and 1985 stand out but there is also the tendency for strong stockbond return years to follow historically forceful tightening cycles 1982 1985 particularly in years 1995 following havoc being wreaked on a 6040 portfolio such as 2022s declines emanuel added us economic data on tuesday included the december sp us manufacturing pmi which showed a read of 462 down from 477 the prior month the november construction spending was up 02 in november following revised 02 loses in october analysts were expecting a 04 drop later in the week theres also fridays december jobs report the final employment report the fed will have to consider before its next meeting on feb 1