Surging Inflation and Interest Rates Pressured Both Stocks and Bonds in 2022
by Peter W. Johnson
Easing inflation pressures and a resolution of the fiscal turmoil in the United Kingdom fueled a strong rally in stocks and bonds early in the fourth quarter, but hawkish Fed guidance, disappointing economic data, and rising global bond yields weighed on markets in December and the S&P 500 finished the fourth quarter with only modest gains, capping the worst year for the index since 2008.