- The S&P 500 fell on light volume, trading about 20% below its 30-day average. The Nasdaq 100, which is heavy on technology, underperformed, falling more than 1%. Tesla shares were the first to fall after news of a plan to temporarily halt production at its China factory rekindled concerns about demand risks. Apple fell to its lowest level since June 2021 amid a slump in big tech.
- The 10-year Treasury yield rose 10 basis points to its highest level since mid-November, as China moved to lift the quarantine on inbound visitors.
- Investors' hopes for a year-end rally to help mitigate what has otherwise been a brutal run for risk assets were dashed by declines at the start of the last trading week of 2022. The S&P 500 is down nearly 20%, while Asian and global stocks are down similarly in the worst annual drop since 2008. The 10-year treasury yield is now above 3.80%, up from 1.5% at the start of the year as the Federal Reserve launched an aggressive anti-inflationary campaign. After beginning 2022 at more than $47,000, bitcoin has remained below $17,000.
