2022 – US stocks collapse in 2022. Here are 4 graphs that show what happens when technology goes down and the energy rushes.

US stocks fell in 2022 as investors feared growth and higher interest rates.

  • Stock markets fell sharply in 2022 as the Federal Reserve raised interest rates and Russia invaded Ukraine.
  • Some meme stocks are down 80% while tech companies have been battered and hurt.
  • Here are four charts that explain what’s happening in the sell-off in 2022.

Stocks are down this year.

The Federal Reserve raised interest rates, ending the era of easy money forever. The Russian invasion of Ukraine drove up oil prices. Investors are concerned about severe inflation and slowing global growth.

The S&P 500 is down more than 16% from its recent highs at Thursday’s close. The tech-heavy Nasdaq 100 is down about 26%.

It was something like a car accident.

But look under the hood and some parts of the car were destroyed while others escaped unharmed.

Unprofitable and speculative tech companies and so-called M stocks have been hit the most in what has been dubbed the “tech spec wreck.”

Buyers are now interested in only one sector: energy.

Here are four charts explaining what’s happening in the stock markets in 2022. (All changes are effective as of market close on Wednesday).

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Stock market investors have flocked to energy stocks this year as growth concerns have damaged the appeal of almost every other sector.

Oil and natural gas prices soared after the invasion of Ukraine by Russia, one of the world’s largest producers.

West Texas Intermediate crude, the benchmark oil price in the United States, has risen about 50% this year to about $110 a barrel. The S&P 500’s energy sector is up by a similar amount – while all other sectors are either flat or down.

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Snap lost a third of its value on Tuesday in one of the most dramatic falls in a year of big drops.

His crime was a warning that revenue was “growing more slowly than expected” due to the economy.

Walmart plunged its most since 1987 on May 17 after cutting its earnings forecast. Palantir collapsed on May 9 and Peloton on May 10, both due to disappointing earnings.

Ben Enker of the investment group GMO told Jeremy Grantham this week that these types of companies are “growth traps.” This means that these are the companies that investors thought would grow quickly, but didn’t.

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The chart shows the performance of the cheapest group of stocks in the US Russell 3000 index compared to the most expensive. Investors are getting rid of expensive names like never before, Bloomberg’s John Others explains.

In 2020 and 2021, stocks rose as governments and central banks inject stimulus packages into the economy.

Some corners of the market have become incredibly expensive when measured by the ratio of stock prices to corporate earnings. Many tech companies have rebounded significantly despite not making any money.

But that trend reversed dramatically in 2022. Investors abandoned more expensive names and moved to cheaper ones, often in more economically sensitive sectors such as financials and commodities.

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Meme stocks are stocks that are popular with retail investors.

They are often popular for reasons that have nothing to do with their underlying performance. There may be a lot of short sellers betting against the company; There can be huge investments in crypto; Or it might make people feel nostalgic.

But in the 2022 market, investors are focused on how well companies can weather economic storms. Mimi’s shares have fallen steadily.

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