Worst year on Wall Street since the 2008 financial crisis – E24

This is how the year ended for the leading indicators:

• The S&P 500 collective index fell 0.25 percent on Friday. A total of 19.95 percent in 2022.
• The Nasdaq Technology Index fell 0.11 percent on Friday. down 33.89 percent this year
• The industry-heavy Dow Jones index fell 0.22 percent on Friday. down 9.40 percent this year.

The good news is that we will soon see 2022 in the rearview mirror. The bad news is that 2023 could be bumpy, at least in the first few months, said Art Hogan, chief strategist at P Riley Wealth. bloomberg.

Inflation and extreme interest rate hikes by the US central bank have led to volatile and lower stock markets.

US Central Bank Chairman Jerome Powell has repeatedly promised to crack down on inflation and has spoken alone on Wall Street.

Although the new year is approaching, there are many investors who do not believe that the downturn is over.

There are more unanswered questions on the horizon, says Rebecca Felton, chief market strategist at Riverfront Investment Group.

– There are many questions as we now enter the new year, but we will certainly be glad that 2022 will end soon, Felton says, according to CNBC.

From about $400 a share to 123

The man who was once the richest man in the world, Elon Musk, is among those feeling the turbulent year has been made even harder. Tesla stock has skyrocketed during the pandemic years in 2020 and 2021, from around $60 a share to more than $400 a share. In 2022, shares in the electric vehicle company have fallen like a stone from just under $400 a share at the start of the year, to just over $123 at the close of the stock market.

It was a good first quarter for the electric vehicle maker. Operating margin was a record 19 percent and the company has delivered more than 300,000 vehicles, according to Yahoo Finance.

At the end of the quarter, Tesla also opened a large new factory in Berlin. This sent stocks surging, as covid-19 once again began to tighten its grip on the electric vehicle locomotive in China.

He sold Tesla stock to fund the Twitter purchase

If that’s not the hope, it’s anyway the fact that the next month, in April, Elon Musk gave and received approval to buy Twitter.

Moreover, the Chinese city of Shanghai, where Tesla’s largest factory is located, was closed due to Corona in April. This resulted in an 80 percent drop in production at the plant in April, and since then the share has mostly fallen.

It also didn’t help that Elon Musk sold Tesla stock in the billions on several occasions so he could fund the Twitter takeover.

When the takeover finally became a reality at the end of October, a flurry of mass layoffs and lawsuits followed.

“In what has been a dark comedy for Twitter, Musk has basically slandered the Tesla stock/story and likely begins to affect the Tesla brand with the ongoing Twitter train wreck debacle,” Dan Ives, senior analyst at Wedbush, wrote in a November note. . Yahoo Finance.

Romjul’s trading started a nightmare for Tesla shares, which fell 11 percent on Tuesday. This caused Musk to reach for the keyboard to calm the staff. In an e-mail, he wrote that they should not worry about the “stock market frenzy” and asked them to work voluntarily, if possible.

– Musk said you’ll make a real difference.

Despite a cautious rally on the last trading day of the year, the stock closed down 69.2 percent for the year.

Since its IPO in 2010, Tesla’s share has only fallen a year earlier, in 2016, when the decline was 11 percent.

According to the British newspaper The Guardian, the wealth of Musk’s main owner decreased by more than half, from $ 304 billion to $ 138 billion during the year. Bloomberg Billionaires Index.