Q4 Recap (2022)
Quarter 4 ended today, and markets had a slight comeback. For the fourth quarter, the Dow Jones is up 15.39%, the Nasdaq lost 1.03%, and the S&P500 gained 7.08%.
The Gross Domestic Product (GDP) had a turnaround in quarter four, as exhibited in the chart below.
Inflation began to drop in quarter 4, down to 7.1% in December’s most recent report. The Fed’s efforts to reduce inflation has been somewhat successful, rates have risen to 4.25–4.50%. It is unclear how the Fed will act, as rates have reached dangerous levels, and could spark a recession if they continue to rise.
Looking ahead to Q1 2023, inflation will likely continue to drop, however this will be dependent on the Fed. Markets could feel effects if rates continue to rise. Loan markets, especially the housing market has seen huge drops in demand, which could repeat to a similar situation in 2008.
Cryptocurrencies also had a disappointing Q4. Bitcoin lost 14.26% and Ethereum lost 8.84%. One of the major stories in the cryptocurrency world was the fallout of FTX, which rattled crypto markets. Investopedia’s Nathan Reiff created a great summary which can be found here.
All information in this article is for educational purposes only and is not to be considered financial advice. Do your own research and consult a financial advisor for advice.
Financial data provided by Google Finance.
