Wall Street ends 2022 with biggest annual drop since 2008 - SABC News - Breaking news, special reports, world, business, sport coverage of all South African current events. Africa's news leader.

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US stocks closed out 2022 lower on Friday, capping a year of sharp losses driven by aggressive interest rate hikes to curb inflation, recession fears, the Russia-Ukraine war and rising concerns over COVID cases in China.

Wall Street’s three main indexes booked their first yearly drop since 2018 as an era of loose monetary policy ended with the Federal Reserve’s fastest pace of rate hikes since the 1980s.

“The primary macro reasons … came from a combination of events: the ongoing supply chain disruption that started in 2020, the spike in inflation, the tardiness of the Fed beginning its rate tightening program in the attempt to corral the inflation,” said Sam Stovall, chief investment strategist at CFRA Research.

Apple Inc , Alphabet Inc , Microsoft Corp , Nvidia Corp , Amazon.com Inc , Tesla Inc are among the worst drags on the S&P 500 growth index , down between 28% and 66% in 2022. Still, signs of U.S. economic resilience have fueled worries that rates could remain higher, though easing inflationary pressures have raised hopes of dialed-down rate hikes.

 

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