The New York Dow Jones Stock Exchange ended lower on Friday (December 30), the last trading day of 2022 and the worst year for the market since 2008, which was hit by rising interest rates. War and growing concern about the number of COVID-19 cases in China.
The Dow Jones Industrial Average closed at 33,147.25 points, down 73.55 points or -0.22%, the S&P 500 index closed at 3,839.50 points, down 9.78 points or -0.25%, and the Nasdaq index closed at 10,466, down. by 11.61 points or -0.11%.
in this week the Dow was down 0.2%, the S&P500 was down 0.1% and the Nasdaq was down 0.3%. The Dow fell 8.8%, the S&P 500 shed 19.4% and the Nasdaq shed 33.1%.
All three indexes closed year-on-year declines in 2022 for the first time since 2018, pressured by the Federal Reserve raising interest rates at their fastest rate since the 1980s.
Sam Stovall, Chief Investment Analyst at CFRA Research indicates that “The market is under pressure from negative factors such as the continued disruption in the supply chain since 2020, rising inflation. and tightening the Fed’s monetary policy to curb inflation.”
He also noted negative factors, including leading economic indicators pointing to a recession, geopolitical tensions including the Ukraine war. as well as the number of people infected with COVID-19 rising in China and tensions between China and Taiwan.
Growth stocks face pressure as Treasury yields rise for most of 2022 and underperform value stocks adjusted for economic conditions. This reverses a trend that has been going on for most of the last 10 years. Apple, Alphabet, Microsoft, India, Amazon and Tesla stocks are stocks that have fallen sharply by 28-66% in 2022.
Growth stocks in the S&P 500 are down about 30.5% this year, while value stocks are down 7.7%, with investors flocking to stocks with high dividend yields and stable earnings It has risen 58% this year as oil prices rise.
Communications stocks have been the hardest hit this year. with more than 40% off
Ten of the 11 groups on the S&P500 closed lower on Friday. Led by real estate and utility groups
Investors will focus on earnings forecasts for listed companies in 2023 amid growing fears of a possible recession.
However, signs of US economic recovery have raised concerns. Interest rates may continue to rise. Even easing inflationary pressures have raised hopes for a slowdown in rate rises.
Financial markets expect a 65% chance that the Fed will raise interest rates by 0.25% at its February meeting. And the interest rate is expected to peak at 4.97% in mid-2023.
Wall Street will be closed on Monday, January 2, 2023 for New Year’s Day. And it will open for business as usual on 3 January.
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