Stocks were mostly negative in the final month of 2022. The Dow Jones Industrial Average fell 4.1%, the S&P 500 dipped 5.8%, and the NASDAQ sank 8.7%. Continuing rate hikes from the Federal Reserve, investors’ unease surrounding Q4 earnings, and uncertain outlooks for 2023 halted the two-month equities rally. Only Emerging Markets finished December in the black, up 0.1%. The Dow closed out 2022 down 6.9%, the S&P ended the year off 18.1%, and the NASDAQ finished 32.5% lower.
While all eleven S&P 500 sectors were higher in both October and November, they all finished lower in December. Energy and Utilities were the lone gainers on the year, ending 2022 up 64.2% and 1.4%, respectively. Consumer Discretionary’s December-worst 11.4% decline also made it the worst-performing sector in 2022, down 37.6%.
Inflation cooled for the fifth straight month to 7.11% YoY, and core inflation was slightly lower as well. US New Single-Family Home Sales rose for the second straight month, but Existing Home Sales experienced its tenth straight monthly decline. The median national existing home price slipped another 2.1% as a result. Lastly, the average price of regular gas at the pump fell to its lowest level since July 2021
MoM Treasury yields rose across the board with the exception of the 1-Year Treasury Bill, which declined by one basis point. The 6-Month Treasury Bill stood atop the US Treasury yield curve at 4.76%. The 10 Year was at the bottom, though its increase of 20 basis points to 3.88% was the largest MoM increase of all US treasuries. Worldwide, the long-term bond rates of Spain, Germany, and Italy all rose by over 50 basis points in December.
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