(News Bulletin 247) – Wall Street ended on a slightly negative note the last session of a trying year 2022 for the American equity markets, the S&P 500 – the main benchmark for managers – having thus posted its worst annual performance since 2008.

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During Friday’s session, the Dow Jones fell more than 0.2% to 33,147 points, as did the S&P500 at 3,839 points, while the Nasdaq Composite fell 0.1% to 10,466 points. Over the year, they show balance sheets of -8.8%, -19.4% and -33.1% respectively.

Soaring inflation, monetary tightening by the Fed and the deterioration in the economic situation have weighed heavily on US equity indices this year, despite the good resistance of consumption in the United States.

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The trend has been particularly affected by the decline in major technology stocks, which have so far benefited from the near-zero interest rates that have allowed investors to generate solid returns in the sector.

The technology sector was thus one of the main contributors to the general decline, as were those of telecommunications and non-essential consumption, while the energy sector, on the contrary, managed to hold its own.

Wall Street also lost ground as the strength of the dollar pushed up the prices of goods and services sold by the most export-oriented US companies.

In the bond market, US government bond yields rose again before the New Year, with the yield on ten-year Treasury bills gaining four basis points on Friday to 3.87%, more than a doubling in 2022.

The still uncertain context could still penalize the trend of equities in 2023, and investors are waiting to know concrete elements allowing to see more clearly, in particular on the possibility of a recession.

At Raymond James, it is pointed out that the S&P 500 has already largely integrated the scenario of a recession by falling 25% in 11 months. Also, the asset manager predicts an upside potential of around 14% for the index by the end of 2023.

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