[ad_1]
(Bloomberg) — Shares of major technology leaders fell again on the last trading day of 2022, capping the worst year for global equities and bonds in more than a decade.
Most read from Bloomberg
The S&P 500 fell, snapping Thursday’s best-ever December rally and is down nearly 20% in 2022. The tech-heavy Nasdaq 100 fell among the benchmarks on Friday, nearing its third loss in value this year. Technology stocks have been particularly vulnerable to some rising rates.
Treasuries tumbled, sending yields higher across the board. The dollar was flat against its major peers, with the Bloomberg Dollar Spot Index falling to a six-month low. The yen also strengthened after the Bank of Japan announced an unprecedented third day of unscheduled bond purchases.
Losses this week It ended hopes of a rally to close out 2022 – a year in which inflation reasserts itself to wipe out a fifth of the value of global stocks, the worst since the financial crisis. Bonds lost 16% in value, the biggest decline for a leading measure since at least 1990, as central banks around the world scrambled to raise interest rates to dampen consumer prices.
Art Hogan, chief market strategist at B. Riley Wealth, said: “We’ve never seen a market like this. We’ve had stocks and bonds go down at the same time. “The good news is we’ll soon put the year in the rearview mirror. The bad news is that 2023 could be a bumpy ride, at least for the first few months. Weaker economic trends are likely heading into 2023 as the Fed battles inflation, but a modest slowdown could help set stocks up for a better second half of the year.
The S&P 500 rose to consecutive record highs in 2018. After a banner year for stocks in 2021, they have already seen that sell-off. But after hitting another all-time high on Jan. 3, stocks quickly turned around when the Federal Reserve signaled its decision to rein in inflation. That marked the start of the most aggressive bull run in decades, sending stocks and bonds into a tailspin.
With U.S. stocks dragged into a bear market, falling Treasury yields sent the 10-year yield to 3.9% from 1.5% at the start of the year. That could signal a different outlook for fixed income in 2023 and a revival of the widely followed 60/40 portfolio that suffered in 2022.
Bryce Doty, senior portfolio manager at Citi Investment Associates, said: “While stocks have struggled with a slowdown in economic activity and the loss of inflated earnings, bonds have been making good returns to beat inflation. “The Fed is close to raising rates – we expect no hike at the Fed’s May meeting – and inflation is slowing.”
Concerns about the spread of Covid-19 this week are still weighing on the market. The European Commission has asked EU member states to review their Covid-19 testing and sequencing processes and consider adapting them in light of the growing threat of the virus spreading from China.
Elsewhere, emerging market stocks were set for their first weekly advance of three, even as the benchmark index remained on track for a more than 20 percent decline in 2022.
Oil fell, adding to a three-day slide on fears of rising crude inventories and rising Covid-19 infections in China, dampening demand for one of the world’s top oil importers. Bitcoin is ending the year on a soft note, sliding to 0.8% on a 64% decline in 2022.
Some of the major activities in the markets are-
Shares
-
The S&P 500 was down 0.7% at 1:03 p.m. New York time
-
The Nasdaq 100 fell 0.8%
-
The Dow Jones Industrial Average fell 0.6%
-
The MSCI world index fell by 0.5%
Currencies
-
The Bloomberg Dollar Spot Index fell 0.5%
-
The euro rose 0.4% to $1.0708.
-
The British pound rose 0.3 percent to 1.2096.
-
The Japanese yen rose 1.6% to 130.93 per dollar.
Crypto currencies
-
Bitcoin fell 0.4% to $16,521.5
-
Ether was little changed at $1,194.85.
Bonds
-
The yield on 10-year Treasuries rose two basis points to 3.84 percent.
-
Germany’s 10-year yield rose 13 basis points to 2.57%.
-
Britain’s 10-year yield rose one basis point to 3.67%.
Goods
This story was produced with the help of Bloomberg Automation.
–With assistance from Jan-Patrick Barnert, Richard Henderson, Vildana Hajrich, Robert Brand and Peyton Forte.
Most read from Bloomberg Businessweek.
©2022 Bloomberg LP
[ad_2]
Source link