Market Snapshot: S&P 500 ends sharply down Friday as stocks suffer first back-to-back weekly loss since September

by | Dec 16, 2022 | Stock Market

U.S. stocks ended lower Friday, booking two straight weeks of losses as recession fears took a toll.How did stocks trade?
The Dow Jones Industrial Average
DJIA,
-0.85%
fell 281.76 points, or 0.8%, to close at 32,920.46.

The S&P 500
SPX,
-1.11%
fell 43.39 points, or 1.1%, to finish at 3,852.36.

Nasdaq Composite
COMP,
-0.97%
slid 105.11 points, or 1%, to end at 10,705.41.

For the week, the Dow fell 1.7%, the S&P 500 lost 2.1% and the Nasdaq dropped 2.7%. All three indexes booked back-to-back weekly losses for the first time since the week ended Sept. 30, FactSet data show.

Need to Know: Given up on Wall Street? Here’s how stocks could rally 20% next year, says veteran analyst What drove markets? Stocks finished lower Friday, booking weekly losses as investors digested interest-rate hikes from central banks and more discouraging signs about the U.S. economy and spending power of the consumer. The Federal Reserve sent equities down after on Wednesday delivering a 50-basis-point interest-rate hike and indicating its benchmark rate could remain above 5% into 2024. “The market is coming to terms” with the Fed’s hawkish messaging, said Iman Brivanlou, head of income equities at TCW Group, in a phone interview Friday. “Increasingly, it looks like we’re going to go into a recession.” Read: Why the consumer is ‘critical’ for investors to watch in 2023 as bear market ‘not yet complete’ Brivanlou said he is defensively positioned, preferring areas such as healthcare and utilities, but wary of consumer staples, as the sector appears relatively expensive compared with other defensive parts of the equities market. Nearly all of the S&P 500’s sectors finished with weekly losses, with the exception of energy. Still, energy stocks dropped Friday as oil prices
CL.1,
-2.12%
fell to around $74 a barrel. Markets appeared to be waking up to the notion that the Fed won’t be pivoting back to interest-rate cuts any time soon, said Paul Nolte, portfolio manager at Kingsview. “Powell has been very consistent with his message to the markets: We’re going to keep raising rates. We’re on this path. We might do it more slowly but we’re not going to stop and pivot,” Nolte said. “It’s just taking the market a while to get comfortable with this.” Jeffrey Kleintop, chief globa …

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