Datatrek co-founder Lists 5 trading days that 'killed' S&P 500 in 2022

Datatrek co-founder Nicholas Colas listed five trading sessions that accounted for more than 95 percent of S&P 500 losses this year on Wednesday, describing these sessions as the “five days that killed the year.” Currently, the S&P is on the track to record 2022 as its worst-performing year since 2008.

Tuesday, September 13, 2022

This day marked the worst trading session for Wall Street since 2020. The S&P index was down 4.3 percent or 177.72 points that day to close at 3,932.69. Other major indexes also posted declines in the same session.

Wall Street tumbled following the publication of the U.S. consumer price index (CPI) for the month of August, which showed that inflation was at a higher rate than expected. The year-over-year August CPI was 8.3 percent. Meanwhile, core inflation — which excludes volatile food and energy prices — accelerated at a 6.3 percent rate.

At that time, economists were particularly concerned about the housing situation as prices remained high.

Wednesday, May 18, 2022

On May 18, the S&P index lost 4.04 percent of its value and ended the trading session at 3,923.68. The Dow Jones and NASDAQ Composite also plunged, declining by 3.57 percent and 4.73 percent, respectively.

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The two biggest contributors to the S&P’s decline were Target and Walmart. Both retailers reported lower quarterly earnings than their earlier projections. The missed targets increased fears that consumers would not be able to cope with the higher prices for goods. The downfall of Target and Walmart’s shares also triggered selloffs for other retailers, like Amazon and Costco.

Previously, Federal Reserve president Jerome Powell made a remark that “there could be some pain involved” due to the central bank’s decision to hike its key interest rates in an effort to battle inflation.

Monday, June 13, 2022

On June 13, the S&P index was officially declared to enter the bear market for the first time in 2022. The top 500 U.S. companies index sank 3.9 percent and concluded the trading session at 3,749.63. At this point, the index’s value had declined by 21.8 percent from its record highs in early January.

The Dow and NASDAQ also plummeted on Monday, losing 2.8 percent and 4.7 percent, respectively. Reports suggested that the increased fear of a recession due to the Fed’s hawkish policy caused selloffs. The situation on Wall Street affected Asian stock markets on the following trading day.

Friday, April 29, 2022

In this trading session, the S&P index closed at 4,131.93 or lost 3.63 percent. Lower quarterly earnings from various companies caused selloffs, which also affected megacap tech stocks. Amazon shares were down 14.05 percent, while Apple lost 3.66 percent. All 11 sectors in the S&P closed lower.

NASDAQ declined 4.17 percent and closed at 12,334.64, while the Dow Jone lost 2.77 to end the day at 32,977.21. Throughout that week all major indexes posted losses, ranging from 2.5 to 3.9 percent.

Thursday, May 5, 2022

After rallying in the previous trading session, Wall Street tumbled on May 5. The S&P index fell by 3.56 percent or 153.27 points to close at 4,146.90. The Dow Jones concluded the trading day at 32,997.97, losing 3.12 percent or 1,063.09 points. Meanwhile, the tech-leaning NASDAQ lost 4.99 percent, or 647.16, to end the session at 12,317.69.

The tumbles on Wall Street occurred due to increasing fears that the Fed would continue to raise its interest rates. Initially, Powell assured that there would not be more hikes. As the year goes on, however, the central bank has maintained its tightening cycle.