US markets close out worst year since 2008


The Dow Jones Industrial Average fell 74 points on Friday December 30 2022, the final day of trading to end the worst year since 2008 for the three major stock indexes that were mired by interest rate hikes from the Federal Reserve and recession fears.

Photo by Noam Galai/Getty Images

Key Facts

All three major stock indices logged small declines Friday Dec 30 2022: The Dow Jones Industrial Average sank 0.2%, while the S&P 500 fell 10 points (0.25%) and the NASDAQ declined 12 points (0.1%).

The Dow fell 9% this year, while the S&P 500 fell 20% and the tech-heavy NASDAQ 34%.

It’s the first year since 2018 that the three indices dropped, and the worst year for markets since the 2008 financial crisis.

Stocks have fallen since the Federal Reserve started raising interest rates in March in a bid to tame the highest inflation rate in decades, sparking fears of a recession and making 2022 the sixth-most volatile year for the markets since the Great Depression. The Fed is expected to hike rates again at its February meeting to as much as 5%, the highest since the Great Depression, though the central bank indicated last month the pace of rate hikes could begin to slow “soon.”

Shares of Tesla have fallen a whopping 69% this year, amid fears about softening demand for the company’s electric vehicles and skepticism about CEO Elon Musk’s time-consuming new venture as Twitter’s owner. The company’s share price ticked up 1.1% Friday and surged 7.9% Thursday, recovering from steep declines earlier in the week.

Further Reading

Dow Plunges Over 700 Points As ‘New Risks’ Fuel Recession Fears (Forbes)

Dow Falls Nearly 300 Points As Economy Enters ‘Stronger Downturn’ And $4 Trillion Options Expiration Fuels Major Volatility (Forbes)