The S&P 500 Growth Index has fallen nearly 30.1% this year, while the price index is down 7.4%, with investors preferring high dividend-paying sectors with stable income such as energy.
The energy has registered a stellar annual gain of 59% due to a rise in oil prices.
Ten of the 11 S&P sector indexes fell on Friday, led by real estate and utilities.
“The housing market has really slowed down and the values of people’s homes have gone down since the beginning of this year,” said J. said Bryant Evans, investment advisor and portfolio manager, Cozad Asset Management in Champaign, Illinois.
“It affects people’s mind-frame and actually affects their spending a little bit.”
Focus has shifted to 2023 corporate earnings outlook with growing concerns about the prospect of a recession.
Still, signs of US economic resilience have fueled concerns that rates could remain high, although easing inflationary pressures have raised expectations of a dialed-down rate hike.
Money market participants see 65% odds of a 25-basis-point hike at the Fed’s February meeting, expected to reach a peak of 4.97% by mid-2023. fedwatch
The Dow Jones Industrial Average fell 73.55 points, or 0.22%, to 33,147.25; The S&P 500 lost 9.78 points, or 0.25%, to 3,839.50; And the Nasdaq Composite fell 11.61 points, or 0.11%, to 10,466.48.
Volume on US exchanges stood at 8.50 billion shares, compared to an average of 10.79 billion for the entire session in the last 20 trading days.
The number of advances continues to decline on the NYSE at a ratio of 1.50 to 1; On the Nasdaq, a 1.03-to-1 ratio favored declines.
The S&P 500 posted no new 52-week highs and no new lows; The Nasdaq Composite recorded 85 new highs and 134 new lows.