Wall Street equity indexes finished lower on Friday on 2022’s last trading day, while Treasury yields rose along with oil futures as investors braced for the new year with worries about a potential recession and the U.S. Federal Reserve rate hiking path.
In currencies, the dollar, a beneficiary of rising U.S. interest rates, fell on the day but was on track for a 2022 gain of roughly 8%, its biggest annual increase since 2015.
The U.S. U.S. 10-year Treasury yield rose on Friday and closed out the trading year with its biggest annual increase in decades, pushed higher by aggressive Fed rate hikes.
The Fed and central banks around the world have been raising interest rates to fight soaring inflation stemming from supply chain problems related to the COVID-19 pandemic and an energy crisis related to oil producer Russia’s Ukraine invasion.
As a result, all three major averages registered their biggest one-year percentage declines since the 2008 financial crisis, with the S&P 500 posting a 19.4% fall for 2022, Nasdaq finishing down 33% and the Dow losing 8.7% for the year.
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