U.S. stocks close lower on Friday

U.S. stocks closed lower on Friday as investors braced for the new year with worries about a potential recession and the U.S. Federal Reserve rate hiking path.

The Dow Jones Industrial Average slid 73.55 points, or 0.22%, to close at 33,147.25. The S&P 500 shed 0.25% to end at 3,839.50. The Nasdaq Composite ticked down 0.11% to 10,466.88.

Friday marked the final day of trading in what has been a painful year for stocks. All three of the major averages suffered their worst year since 2008 and snapped a three-year win streak.

All three major averages registered their biggest one-year percentage declines since the 2008 financial crisis, with the S&P 500 posting a 19.4% fall for 2022, Nasdaq finishing down 33% and the Dow losing 8.7% for the year.

The Fed and central banks around the world have been raising interest rates to fight soaring inflation stemming from supply chain problems related to the COVID-19 pandemic and an energy crisis related to oil producer Russia's Ukraine invasion.

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