S&P 500 falls as tech leads losses in the final day for trade for 2022
By Yasin Ebrahim
Investing.com — The S&P 500 fell sharply Friday, as the relief rally in tech from a day earlier run out of steam, putting stocks on course for its biggest yearly loss since the 2008 financial crisis.
The S&P 500 fell 1%, the Dow Jones Industrial Average fell 0.9% or 296 points, the Nasdaq Composite was down 1%.
Stocks were on the back foot for the last day of trade as tech selling resumed after a short reprieve one day earlier.
Apple (NASDAQ;AAPL), Alphabet, Meta Platforms (NASDAQ :META), Microsoft Corporation (NASDAQ :MSFT), and more fell than 1%.
Semiconductor stocks continue to fall as investors worry about declining demand for chips in a softening global economic environment.
“We believe investor’s concern for some time with semiconductors has been that enterprise demand will follow consumer requirements in softening,” Wedbush said. “DigiTimes suggests indeed this future is coming to fruition with hyperscale and telcos cutting back data center expansion plans.”
Taiwan Semiconductor Manufacturing, Wolfspeed (NYSE.WOLF), and Micron Technology were all down more than 2%. The latter was also impacted by the downgrade from Argus.
Argus reduced Micron’s rating to a ‘hold” from a ‘buy’ due to potential losses in the upcoming quarters.
The 30% loss in tech for the year has the Federal Reserve’s fingerprints all over it. The U.S. central banks moved at the fastest rate of rate hikes This is the first time in 40 years that Treasury yields have been higher than ever before, which has hurt valuations of more expensive sectors of the market, including tech.
Nikola Corporation (NASDAQ NKLA) was also in the news as it fell 10% due to plans to raise funds with senior convertible bonds worth $125million. China’s EV manufacturer Li Auto (NASDAQ.LI), rose over 3%, as it projected more than 20k deliveries this month, a significant increase on the 14,087 deliveries that were made in December 2021.
Energy was the only sector trading in green. It traded slightly above the flatline and was supported by a 2% rise oil prices.
Rogers Communications (NYSE.RCI), Canada’s antitrust tribunal, approved Rogers Communications’ $26B acquisition Shaw Communications (TSX.SJRb).
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