US stocks limp to end of worst year since 2008

NEW YORK: Wall Street advanced in lowvolume trading as revellers gathered to ring in 2019, marking the end of the worst year for US stocks since 2008, the height of the financial crisis.

Wall Street entered correction territory in late January and was challenged for much of 2018 by tariff jitters, rising interest rates, and fears of diminishing corporate profits.

‘‘Investors got complacent,’’ Thomas Martin, senior portfolio manager at Globalt Investments in Atlanta, said.

‘‘People were positioned for the lack of volatility, and when that changed because of trade concerns and interest rates, people started repositioning and that started the cascade.’’

December was a particularly trying month for U.S. equities. The S&P 500 had its worst December since the Great Depression and the Nasdaq confirmed it was in a bear market, or 20% below its high. All three are down about 9% since the beginning of the month.

In the new year, investors hope for the removal of question marks that acted as significant headwinds in 2018, including USChina trade negotiations, the path of US Federal Reserve interest rate hikes, slowing corporate growth and economic fallout from the upcoming departure of Britain from the European Union, or Brexit, among other concerns.

As 2019 gets under way, ‘‘investors will be looking to corporate earnings, what happens with the trade negotiations and the body language of the Fed,’’ Mr Martin said.

Renewed hopes for a resolution to the USChina trade dispute provided a glimmer of optimism for investors yesterday.

US President Donald Trump indicated on Twitter that pro gress had been made towards a potential settlement of trade tensions between the United States and China which have plagued stock markets for much of the year.

Trading volume was relatively light, owing to the holiday as the US federal government shutdown entered its 10th day.

Healthcare and tariffsensitive technology stocks, led by Boeing Co and Caterpillar Inc, provided the biggest boost to the S&P 500 on Monday.

The Dow Jones Industrial Average rose 265.06 points, or 1.15%, to 23,327.46, the S&P 500 gained 21.11 points, or 0.85%, to 2506.85 and the Nasdaq Composite added 50.76 points, or 0.77%, to 6635.28.

All 11 major sectors in the S&P 500 ended the session in positive territory. But for the year, only healthcare and utilities ended 2018 higher.

Energy, materials, communication services , industrials and financials were the biggest percentage losers of 2018, down between 14.7% and 20.5% from the beginning of the year.

The 20.5% drop of energy stocks in 2018 was largely attributable to crude prices plunging 38% since early October.

Advancing issues outnumbered declines on the NYSE by a 2.42to1 ratio and by a 1.81to1 ratio on the Nasdaq.

The S&P 500 posted no new 52week highs and no new lows; the Nasdaq Composite recorded eight new highs and 98 new lows. — Reuters