Dow Jones Average slipped 0.12 %, or 41 points, S&P 500 0.14%, and Nasdaq 100 futures traded 0.08% lower as futures tied them down.
The Nasdaq Composite and S&P 500 rose around 2.6% and nearly 1.8%, respectively, during the typical trading session before the overnight movements. Three hundred forty-five points, or 1.05%, were added to the Dow.
Nasdaq registered a modest loss throughout the week, while S&P and Dow were slightly higher. For December, all the major averages are low and ending a two-month winning streak.
A painful year for stock trading comes to an end this Friday. It was a rollercoaster ride for the investors as the growth and technology stocks were severely impacted by a volatile bear market, persistent inflation, and abrasive Federal Reserve rate rises.
It was their worst year since 2008 as all three of the major averages drastically fell, expected to end the three-year winning streak. On the other hand, the Dow was one of the best among the rest of the indices in 2022, which was down 8.85%, while the tech-heavy Nasdaq and S&P declined 33.03% and 19.24%, respectively.
Regardless of the yearly losses, the Dow is poised for a quarterly gain of 15.65%, ready to break a three-quarter losing streak. It is on track for its best quarter compared to the second quarter of 2022. However, the S&P is trending 7.35% up and ready to break its three consecutive quarterly losses. Since 2001, for the first time, Nasdaq dropped 0.92% for its fourth subsequent negative quarter.
On Thursday, all the major sectors of S&P finished with a gain, positively impacting communication services. However, consumer discretionary and communication are the sectors that will take a beating for the quarter. The only sector gaining every year is Energy after increasing by 58%.
Some investors believe that the pain is far from over and will continue to be a bearish market until a recession hits or the central bank pivots the next year, as the year ends. As a result, some of the project stocks are bound to hit new lows. The changes on Thursday most likely resulted from a mix of short covering, momentum, and value investing traders joining the surge, as per CEO of 50 Park Investment, Adam Sarhan.
He further continued, “Nothing fundamentally has changed. We just had a huge drop. The market’s extended to the downside, and it’s perfectly normal to see a bounce here.”
Regarding the economic front, the Chicago PMI data for December will be released on Friday.
- Published By Team Hongkong Journalist
