The Clap
The Nasdaq finished in the red for a fourth consecutive quarter in 2022, the longest streak since 2000/2001, despite a last-gasp rally on Thursday.
What
The Nasdaq recorded losses of:
- 9.1% in Q1
- 22% in Q2
- 4.1% in Q3
- 1% in Q4
The Nasdaq fell 33% since the beginning of 2022, its worst year since the financial crisis of 2008 and its third-worst year in history.
Amazon (NASDAQ:AMZN), Meta (NASDAQ:META), and Tesla (NASDAQ:TSLA) all dropped significantly in value.
So What
Tech giants faced significant challenges throughout the year, as fears of a recession lingered among investors for much of the year.
The decline in the market this year has driven investors to look more closely at cash-generating companies rather than at rapid growth.
Now What
The tech sector is expected to remain wounded for the coming quarters, with the possibility of interest rate hikes pushing the economy into a recession.
Historically, tech companies tend to thrive while the economy is growing.
