Jan 26, 2022 - Economy & Business

It's official: Stock market having worst start to year ever

Data: FactSet; Chart: Axios Visuals
Data: FactSet; Chart: Axios Visuals

It's been a decidedly ugly start to the year for the stock market, with particular pain in the tech trade.

State of play: As of the end of trading Tuesday — the 16th session of the year — 2022 is now, officially, the worst-ever start in the history of the S&P 500, according to data from Ned Davis Research, a stock market research shop.

  • The 8.6% decline for the month edges out the 8.57% drop experienced in January 2009.
  • S&P 500 data goes back to 1929.

Between the lines: The sell-off has been even worse for the tech-heavy Nasdaq composite index.

  • Big tech is also a major driver of the S&P 500. Apple, Alphabet, Microsoft and Tesla generated over 25% of the index's total return last year.
  • Tech shares tend to get disproportionately dinged up when interest rates rise.

What's next: Big Tech earnings are on tap this week, and any surprises could add to the pressure on stocks — or provide relief. Microsoft released good numbers last night, and Tesla and Apple are on deck Wednesday and Thursday.

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