Stocks tumble to end Wall Street’s worst year since 2008, S&P 500 closes 2022 down nearly 20%

As Wall Street ended its worst year since 2008 on a sour note, stocks slipped on Friday to end a brutal 2022 with a whimper.

The Dow Jones industrial average closed down 73.55 points, or 0.22%, at 33,147.25. The S&P 500 ended 0.25% lower at 3,839.50. The Nasdaq Composite was down 0.11% at 10,466.88.

Friday marked the final day of trading in what has been a painful year for stocks. All three major averages had their worst year since 2008 and snapped three-year winning streaks. The Dow is down 8.8% in 2022, the best among the indices. The S&P 500 fell 19.4%, and is 20% below its record high, while the tech-heavy Nasdaq fell 33.1%.

Sticky inflation and aggressive rate hikes from the Federal Reserve hurt growth and tech stocks and weighed on investor sentiment throughout the year. Geopolitical concerns and volatile economic data also kept markets on edge.

“We’ve had everything from the Covid problems in China to the invasion of Ukraine. They’re all very serious. But for investors, this is what the central bank does,” said Art Cashin, director of floor operations at UBS. CNBC’s “The Exchange.”

As the calendar turns to a new year, some investors feel the pain is far from over. They expect the bear market to last until a recession hits or the central bank takes the lead. Some stocks will hit new lows before recovering in the second half of 2023.

“I’d like to tell you it’s going to be like the ‘Wizard of Oz,’ and everything will be in glorious color in a minute or two. I think, depending on the Fed, it could be flat in the first quarter. It could be a little longer than that,” Cashin said.

See also  Giants-Vikings Final Score: The Vikings won 27-24 on a 61-yard Greg Joseph field goal.

Despite annual losses, the Dow and S&P 500 pared three quarters of losses in the final three months of the year. However, the Nasdaq, dominated by companies such as Apple, Tesla and Microsoft, was troubled by its fourth consecutive negative quarter for the first time since 2001. However, all three averages are negative in December.

Communications services was the worst-performing sector in the S&P 500 this year, falling more than 40%, followed by consumer discretionary. Only the energy sector rose 59%.

— Gabriel Cortez contributed reporting

Read today’s market coverage in Spanish here.

Correction: The chart in this story has been updated to reflect the correct year-to-date decline for the Dow Jones Industrial Average.

Leave a Reply

Your email address will not be published. Required fields are marked *