- U.S. stocks fell sharply over a renewed hawkish stance from the Fed and resurfacing growth concerns. The S&P 500 Index declined nearly 5%, putting it near recent bottoms from mid-June this year. The Cboe Volatility Index (VIX) rose sharply late in the week, although it was still under prior highs from earlier in the year.
- All S&P 500 sectors were lower last week. More defensive sectors, including consumer staples and healthcare, generally fared the best. More cyclical sectors, including energy and consumer discretionary, generally performed the worst.
- Market leadership by style was mixed, although small-caps lagged large-caps as investors fled to bigger companies with more established business models and balance sheets. Large-caps and value shares retain leadership year-to-date relative to small-caps and growth shares, respectively.
- The Nasdaq fell over 5% on the week and is now off over 30% so far in 2022. The S&P 500 is now down more than 20% year-to-date.
