As the year 2022 is about to end, this year will be booked as the worst year for US Stock Market along with the Global recession possibility in their respective stock markets. The year 2022 will be booked as the worst fear for the stock market similar to the 2008 year.
This can be analyzed from the fact that 2022 was not able to showcase any pretty picture for the stock market and the S&P 500 index has declined by 19% in its performance since the losses of 2008. So it is analyzed as one of the worst-performing years after 2008 for the US Stock Market.
David Jones’s industrial average index also showcased a downfall of up to 8.8 % In the US Stock Market. along with that, the Nasdaq composite index also witnessed 33.1% in the year 2022. All these numbers showcase that the Global stock exchange has been facing the worst annual drops since the financial crisis of 2008.
The fall in the US stock market in 2022
The momentum of these losses in the stock market losses was picked up by the increase of the Federal Reserve interest rate in the last quarter of 2022. These increased interest rates are delivered effectively deal with the rise in inflation in the year 2022. From the historical numbers, it is also evaluated that the rise in the interest rates has been a part of rapid efforts during inflation in any country.
Although the possibilities of infusion are still visible in the economy, the increased interest rate if not calibrated again will result in a spark of recession in the economy. This will result in the devastation of Corporate earnings in the year 2023. The constant fall of the market will be considered as really headed toward a seasonal direction by the end of this year.
The Dow Jones Industrial Average is considered an industrial average is considered as the weighted average of the top 30 Companies listed on the US Stock Market. In this proposition, Dow Jones Industrial is considered one of the oldest followed equity indexes in the US Stock Market.
As the Dow Jones Industrial Average has been able to conclude by 33,147.25 by the end of 2022, after a total fall of 8.8 % in the last one year. The last month of December for the US Stock Market was driven by the possibility of covid cases in the next month of January along with the possibility of a recession in the first quarter of January.