Stocks traded in a series of volatile sessions throughout the holiday season and finished the month in negative territory. Investors continued to weigh the possible impacts of slowing global growth, geopolitical trade disputes and the partial U.S. government shutdown.

 

Major U.S. indices such as the S&P 500 and Dow Jones Industrial Average suffered their worst Decembers since 2008. The technology-heavy NASDAQ composite fell into bear market territory on 12/21 declining over -20% off its high in late August. The previously high-flying tech sector has taken the brunt of this market downturn as investors shed the risk associated with this expensive sector.

 

The Federal Reserve raised the target interest rate by 0.25% at their December meeting. Though the move was expected, the increase continues to push interest rates higher, which typically lead to higher consumer and business lending rates, escalating concerns of slowing future economic growth. Though not enough to erase the monthly and yearly losses, stocks moved higher in the final week of the year. Along with possible progress in China-U.S. trade talks, investors took advantage of the recent volatility by picking up discounted stocks hit hard by the pullback.