(For a Reuters live blog on U.S., UK and European stock
markets, click LIVE/ or type LIVE/ in a news window)*Tesla falls as quarterly deliveries miss estimates*China ADRs gain on post-COVID recovery hopes*Indexes down: Dow 0.07%, S&P 0.26%, Nasdaq 0.56%Jan 3 (Reuters) - Wall Street's main indexes fell on the
first trading day of the year following declines in Apple and
energy stocks, with investors awaiting the Federal Reserve's
meeting minutes for further clarity on the path of future
interest rate hikes.Most of the major S&P 500 sectors were in the red, with
information technology stocks pulled lower by a 3%
drop in the shares of iPhone maker Apple Inc following
a report of a rating downgrade by Exane BNP Paribas.Tesla Inc fell nearly 10% as the electric-vehicle
maker missed Wall Street estimates for quarterly deliveries.Other rate-sensitive technology and growth stocks such as
Alphabet Inc, Meta Platforms Inc, Microsoft
and Amazon.com Inc were up between 0.6% and
2.0%.The energy sector, which logged stellar gains in 2022, fell
1.2% tracking oil prices lower on bleak business activity data
from China as well as concerns about the global economic
outlook."The market, like today, is not very much about fundamentals
or news, it's more about the emotion of a start of a new year
and investors trying to decide if a recovery is in front of
them," said Rick Meckler, partner at Cherry Lane Investments in
New Vernon, New Jersey.The main U.S. stock indexes ended 2022 with their steepest
annual losses since 2008 against the backdrop of the Fed's
fastest pace of rate hikes since the 1980s.The S&P 500 shed 19.4% in 2022, marking a roughly $8
trillion decline in market cap, while the Nasdaq fell 33.1%,
dragged down by growth stocks.Investors on Wednesday will closely monitor the minutes of
the Fed's December policy meeting, when the central bank raised
interest rates by 50 basis points after four back-to-back 75-bps
hikes and signaled rates could stay higher for a while.Other economic data due this week includes December's
nonfarm payrolls report as well as the ISM manufacturing report,
which will give further clues on the strength of the economy and
the labor market.Money market participants see a 68.8% chance the Fed will
raise the benchmark rate by 25 bps to 4.50%-4.75% in February,
with the rates peaking at 4.94% by June.At 10:48 a.m. ET, the Dow Jones Industrial Average
was down 24.82 points, or 0.07%, at 33,122.43, the S&P 500
was down 9.92 points, or 0.26%, at 3,829.58, and the
Nasdaq Composite was down 58.43 points, or 0.56%, at
10,408.05.U.S.-listed Chinese firms such as Alibaba Group Holding Ltd
, JD.com Inc, Pinduoduo Inc rose between
3% and 6% on post-COVID recovery hopes.Advancing issues outnumbered decliners for a 1.85-to-1 ratio
on the NYSE and a 1.57-to-1 ratio on the Nasdaq.The S&P index recorded no new 52-week high and one new low,
while the Nasdaq recorded 73 new highs and 23 new lows.
(Reporting by Shubham Batra, Ankika Biswas and Amruta Khandekar
in Bengaluru; Editing by Shounak Dasgupta)