Shares fell on Friday as investors made their final trades in the worst year for the market since 2008.
The Dow Jones Industrial Average slipped 168 points, or 0.5%. The S&P 500 lost 0.7%, while the Nasdaq Composite fell 1.1%.
Friday marks the last day of trading in what has been a painful year for stocks. A volatile bear market, persistent inflation and aggressive rate hikes from the Federal Reserve have hurt growth and technology stocks. These factors also weighed on investor sentiment.
The top three averages are heading for their worst year since 2008, slated to snap a three-year winning streak. The Dow did the best of the indexes in 2022, down 8.58% through Thursday, while the S&P and the tech-heavy Nasdaq fell 19.24% and 33.03%, respectively.
As the calendar year draws to a close, some investors think the pain is far from over and expect the bear market to persist until a recession hits or the Fed pivots. Some are also predicting that stocks will hit new lows before rebounding in the second half of 2023.
“We’re kind of stuck in neutral right now, because there are more unanswered questions than there are known entities. … We have a lot to do on this next earnings season, when we think to the pressures that are going to exist on margins,” said Rebecca Felton, senior market strategist at Riverfront Investment Group, on “scream box.”
“There are a lot of questions as we enter the new year, but we will certainly be happy to see 2022 come to an end,” Felton added.
Despite the annual losses, the Dow and S&P 500 are poised to break three-quarter losing streaks. is on track for a quarterly gain of 15.65% and is ready to snap a three-quarter losing streak. The tech-heavy Nasdaq, however, is on track for its fourth consecutive negative quarter for the first time since 2001.
S&P 500 communications services stocks were down more than 40% on the year and consumer discretionary fell 37.4%, while energy, the only positive sector in the large-cap index, climbed almost 58%.
On the economic front, Chicago PMI data for December is due out on Friday. Next week will see a slightly more active slate of economic data, highlighted by the nonfarm payrolls report scheduled for January 6. Financial markets are closed on Monday for the New Year holiday.
— Gabriel Cortes contributed reporting
Correction: A chart in this story has been updated to reflect the correct year-to-date decline for the Dow Jones Industrial Average.