S&P 500 falls as final trading week of 2022 begins – CNBC
Stocks fell Tuesday as the final trading week of trading of the year commenced and investors weighed the economic outlook for 2023.
The Dow Jones Industrial Average last rose 122 points, or 0.35. The S&P 500 traded flat, while the Nasdaq Composite shed 0.7%.
China-linked stocks rose as the country eased Covid restrictions. Tesla slumped 5% on news of an extended production pause, while Southwest shed 4% as the airline canceled thousands of flights.
Yields also rose, putting pressure on growth stocks like technology. The yield on the 10-year Treasury note was last up by around 5 basis points to trade at 3.798%.
“It’s basically the continuation of high yields depressing growth, with redistribution into other sectors that are smaller, but not big enough to change the headline index,” said Truist’s Keith Lerner.
The combination of tax loss selling, portfolio rebalancing, and investors deciding where to position their portfolios for 2023 may also be weighing on the indices, said Sameer Samana, senior global market strategist for Wells Fargo Investment Institute
Stocks are headed for their worst yearly performance since 2008 and another down month, with the Dow and S&P down 8.8% and 19.8%, respectively. The Nasdaq’s fallen 33.8%.
For December, the S&P has dropped roughly 6.4%, while the Dow and Nasdaq are down about 4.2% and 9.7%, respectively. The major averages are on pace for their biggest monthly declines since September.
After a brutal year consumed by inflation and recession fears, investors hoped to cap off 2022 on a positive note. Friday kicked off the period for a Santa Claus rally, which is typically considered the final five-day trading stretch in the current year, as well as the first two trading days in the new year.
Questions also lingered over whether the volatility will continue into 2023 and what the economy, and inflation, will bring as the calendar year turns a corner.
Markets were closed Monday for the Christmas holiday. In this shortened trading week, investors are expecting either relative quiet or further volatility due to low trading volumes.
Leave a Comment