Stocks fell on Friday as investors made their final trades within the worst yr for the market since 2008.
The Dow Jones Industrial Average slipped 220 points, or 0.7%. The S&P 500 shed 0.8%, while the Nasdaq Composite also dropped 0.8%.
Friday marks the ultimate day of trading in what has been a painful yr for stocks. All three of the main averages are marching toward their worst yr since 2008, slated to snap a three-year win streak. The Dow fared the most effective of the indexes in 2022, down 9.4%. The S&P 500 and tech-heavy Nasdaq tumbled 20% and nearly 34%, respectively.
Sticky inflation and aggressive rate hikes from the Federal Reserve battered growth and technology stocks and weighed on investor sentiment all year long. Geopolitical concerns and volatile economic data also kept markets on edge.
“We have had all the things from Covid problems in China to the invasion of Ukraine. They’ve all been very serious. But for investors, it’s what the Fed is doing,” said Art Cashin, director of floor operations for UBS, on “The Exchange.”
Because the calendar turns to a recent yr, some investors think the pain is removed from over. They expect the bear market to persist until a recession hits or the Fed pivots. Some also project stocks will hit recent lows before rebounding within the second half of 2023.
“I’d like to inform you that it will be just like the ‘Wizard of Oz’ and all the things goes to be in glorious color in a moment or two. I feel we could have a bumpy first quarter, and depending on the Fed it could last slightly longer than that,” Cashin said.
Despite the yearly losses, the Dow and S&P 500 are on pace to snap three-quarter losing streaks. The tech-heavy Nasdaq, nonetheless, is on the right track for its fourth consecutive negative quarter for the primary time since 2001. All three averages are negative for December, nonetheless.
Communication services was the worst performing sector within the S&P 500 this yr, falling greater than 40%, followed by consumer discretionary. Energy was the one sector to rise, climbing nearly 60%.
— Gabriel Cortes contributed reporting
Correction: A chart on this story has been updated to reflect the right year-to-date decline for the Dow Jones Industrial Average.
