S&P 500 declined a catastrophic 19.4% this year, the worst decline since 2008

S&P 500 declined a catastrophic 19.4% this year, the worst decline since 2008

Trading market summary for 2022

The U.S. stock market had a terrible year, with stocks closing off the lows on Friday and ending the worst period in nine years since the financial crisis

S&P 500 and Dow both were 0.2% lower on the last trading day of the year, while the Nasdaq is about 0.1% lower.

Dow meanwhile dropped 9%, a comparatively smaller amount, in 2022. By contrast, the bond market suffered its worst year in modern history.

S&P 500 declined by a catastrophic 19.4% this year, the worst decline for a calendar-year period since 2008. It closed at 3,839.50 on Friday, which means it has lost over 50% of its value since March 2021.

The Nasdaq is down 33% and stands at the same level as in July 2020.

Tesla shares gained some 8% on Thursday, following the sharp losses seen this year and this month (dropping over 65% this year). The stock saw a 1.1% increase on Friday, with shares in Tesla recovering from their losses this week. Other popular stocks lost their grounds to the bear market this year; AAPL(27%), GOOGL(39%), MSFT(29%), META(65%), NVDA (50%) and INTC.(48%).

WTI crude oil closed up by 2.5% on Friday at $80.40 per barrel, giving it an annual gain of 2.5%. While it's certainly been a big year for the price of crude oil with 50% growth in 2019 and an almost doubling of the value right.

The Federal Reserve's rate hike campaign in 2022 strongly affected tech stocks.

Also Read: Top 10 Stocks to Buy in 2023

Technology stocks in the S&P 500 (XLK) fell 28% this year, its biggest drop since 2008. Meanwhile, the communication services sector (XLC) — had its biggest yearly fall on record, with a drop of 38%.

Although the price of oil has risen modestly, the strength of the energy sector in 2022 pushed the XLE 57% high this year. This is unusual, as it's the only sector in S&P500 to showcase gains for 2022.

The dollar experienced some volatility and was weaker this week but it logged its biggest annual gain of all time thanks to the Federal Reserve raising interest rates.

Trading in crypto markets has been challenging, as bitcoin is set to finish the year down 65%. The price of bitcoin was little changed Friday to trade near $16,500.

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