US Stocks Hit 2022 Highs: In a buoyant close on Friday, U.S. stocks surged to their highest levels since early 2022, fueled by a robust jobs report that bolstered investor confidence in a soft landing for the economy. The S&P 500 and Nasdaq led the charge, underlining the resilience of the market despite recent uncertainties.
Investors scaled back expectations of a Federal Reserve rate cut in March following the Labor Department’s report, which revealed a substantial increase of 199,000 jobs in November, surpassing the estimated 180,000. The unemployment rate slipped to an impressive 3.7%, while average earnings nudged up to 0.4%, exceeding forecasts of 0.3% growth.
Market sentiments shifted, with traders now widely anticipating the Federal Reserve to maintain interest rates in its upcoming meeting. The CME FedWatch tool indicates a delay in rate cut expectations, with futures prices suggesting a shift towards a potential cut in May, contrasting the March timeline that had gained traction in recent days.
Stuart Cole, Head Macro Economist at Equiti Capital in London, remarked, “The drop in the unemployment rate in particular will assuage any concerns of a recession, and with payrolls and earnings both rising, it keeps the soft landing narrative very much in the ascendancy.” The S&P 500 closed at 4,604.37 points, marking its highest since March 2022, while the Nasdaq reached 14,403.97 points, its peak since April 2022. The Dow Jones Industrial Average also posted gains, closing at 36,247.87 points.
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For the week, the S&P 500 notched a 0.21% rise, continuing its six-week streak of gains, the longest since November 2019. The Dow registered a marginal 0.01% uptick, maintaining its sixth consecutive positive week, the lengthiest positive run since February 2019. The Nasdaq recorded a 0.69% gain for the week.
Despite these gains, the S&P 500 remains 4% below its record high from late 2021, while the Nasdaq lags by 10%. Key performers in Friday’s session included chipmaker Nvidia (NVDA.O) and Meta Platforms (META.O), each gaining nearly 2%. Alphabet (GOOGL.O) saw a 1.4% dip after an AI-driven rally in the previous session.
Honeywell (HON.O) experienced a 1.6% dip following its announcement of acquiring Carrier Global’s (CARR.N) security business for $4.95 billion, while Carrier’s shares rose by almost 4%. Media company Paramount Global (PARA.O) soared 12% amid takeover interest reports, and Warner Bros Discovery (WBD.O) jumped 6.6%. E-signature provider DocuSign (DOCU.O) rallied 4.8% after raising its annual revenue forecast.
The U.S. stock market’s steady ascent since late October, propelled by strong quarterly reports and optimism about the Fed concluding its rate hikes, continues to paint a positive picture for investors. The upbeat consumer sentiment in December further adds to the positive market dynamics. As the year concludes, U.S. stocks exhibit resilience, and with the soft landing narrative prevailing, investors navigate a landscape shaped by economic indicators and central bank dynamics.
Our Reader’s Queries
What stock went up the most in 2022?
The S&P 500 has seen some impressive performances in 2022, with the top 10 stocks delivering exceptional returns. Occidental Petroleum Corp. leads the pack with a staggering 119.1% total return, followed closely by Hess Corp. at 94.1%. Exxon Mobil Corp. and Marathon Petroleum Corp. also made the list with impressive returns of 87.4% and 86.6%, respectively. These companies have clearly demonstrated their ability to thrive in a challenging market, making them a top choice for investors looking to maximize their returns.
How high was the stock market in 2022?
On January 5, 2022, the Dow Jones Industrial Average hit a record high of 36,952.65 points during intraday trading. This marks a significant milestone for the stock market and reflects the strength of the economy.
What was the 52-week high of the S&P 500?
On Tuesday, the S&P 500 reached a 52-week high, closing at 4,774.75. It came close to its all-time closing high of 4796.56, which was recorded on January 3, 2022.
What was the stock market highest ever?
The Dow Jones has hit a new record high! On Wednesday, it closed above its previous peak of 36,799.65, which was set back in January 2022. This is great news for investors and a positive sign for the economy.