S&P 500 closes out dismal year with worst loss since 2008 The Associated Press en Espaol

News Summary

  • Although bonds typically fair well when stocks slump, 2022 turned out to be one of the worst years for the bond market in history, thanks to the Fed’s rapid rate increases and inflation.Several big updates on the employment market are on tap for the first week of 2023.
  • Its forecast doesn’t call for a rate cut before 2024.Rising interest rates prompted investors to sell the high-priced shares of technology giants such as Apple and Microsoft as well as other companies that flourished as the economy recovered from the pandemic.
  • Russia’s invasion of Ukraine worsened inflationary pressure earlier in the year by making oil, gas and food commodity prices even more volatile amid existing supply chain issues.
  • That has made the Fed’s job more difficult, though, because strong employment and wages mean it may have to remain aggressive to keep fighting inflation.
  • It’s uncertain at this point what impact China’s reopening will have on the global economy.The Fed’s battle against inflation, though, will likely remain the overarching concern on Wall Street in 2023, according to analysts.
  • The electric vehicle maker’s stock plummeted 65% in 2022, erasing about $700 billion of market value.Southwest Airlines rose 0.9% as its operations returned to relative normalcy following massive cancellations over the holiday period.
Wall Street capped a quiet day of trading with more losses Friday, as it closed the book on the worst year for the S&P 500 since 2008. The benchmark index finished with a loss of 19.4% for 2022 [+5662 chars]