The S&P 500 and Dow Industrials posted their worst quarterly performances since the first quarter of 2020 when lockdowns sent stocks plummeting. The S&P 500 slumped more than 16% in the second quarter to cap its worst two-quarter start to a year since 1970, down nearly 20% versus a 21% loss 52-years ago. Moreover, the tech-heavy Nasdaq Composite skidded more deeply into a bear market, down nearly 31% from its peak on November 19, 2021. The Nasdaq was hard hit as investors rotated out of growth-oriented areas of the market in favor of value. Rising interest rates can make future profits from growth companies less attractive.

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The Quarterly Recap is published by Cetera Investment Management LLC, an SEC registered adviser owned by Cetera Financial Group. Cetera Investment Management provides market perspectives, portfolio guidance, model management, and other investment advice to its affiliated broker-dealers, dually registered broker-dealers and registered investment advisers.