Friday was a fitting day on Wall Street—a losing day to end a lousy year. It was, in fact, the market's worst year since the 2008 financial crisis, reports CNBC.
- The benchmark S&P 500 slipped 9 points on Friday to close the year at 3,839, down nearly 20% in 2022.
- The Dow fell 73 points to close the year at 33,147, down about 9% in 2022.
- The tech-heavy Nasdaq fared worst of all in 2022: It fell 11 points on Friday to close the year at 10,466, down about 33% since January.
- The assessment from the Wall Street Journal: "This year has proved to be one of the worst for markets in recent history, with stocks and bond prices both falling, and exceptional volatility roiling currencies and commodities. ... Money managers entered the year expecting that advances in the stock market would slow after three consecutive years of blockbuster gains. But few were prepared for how tough 2022 would be."
- Not surprisingly, the Fed's aggressive rate hikes this year to combat inflation are getting the brunt of the blame. “We’ve had everything from COVID problems in China to the invasion of Ukraine. They’ve all been very serious. But for investors, it is what the Fed is doing,” Art Cashin of UBS tells CNBC.
- As for what's ahead in 2023, the AP sees more of the same volatility, probably through at least the first quarter: "The Fed's battle against inflation ... will likely remain the overarching concern in 2023, according to analysts. Investors will continue searching for a better sense of whether inflation is easing fast enough to take pressure off of consumers and the Fed."
(Read more stock market