By Erik Norland, CME Group
Equity markets reversed direction in two distinct ways in 2022. First, and most obviously, major indices such as the S&P 500®, Russell 2000, Dow and Nasdaq 100 fell after rising sharply in 2020 and 2021. Secondly, and not as apparent, was a near perfect sector performance reversal. The sectors that had performed well in 2020 and 2021 declined, whereas sectors that had performed poorly in 2020 and 2021 generally rebounded (Figure 1).