The US stock market’s biggest underperformers in 2022 made a brisk start to the new year, with some shares that suffered losses of more than 80% leading gains.
(Bloomberg) — The US stock market’s biggest underperformers in 2022 made a brisk start to the new year, with some shares that suffered losses of more than 80% leading gains.
Beaten-down technology shares, retail trader favorites and stocks exposed to cryptocurrencies all jumped in trading before the market opened on Tuesday, tracking similar moves in Europe.
Among companies whose shares sank more than 80% in 2022, electric-vehicle maker Mullen Automotive Inc. rose 11% on Tuesday, while home furnishings retailer Bed Bath & Beyond Inc. jumped 15% and digital-asset exchange operator Coinbase Global Inc. advanced 2.7% on Tuesday.
Technology stocks such as Snap Inc., which fell 81% in 2022, gained 1.1%, as did Roku Inc., after plummeting 82% last year.
Last year’s backdrop of aggressive interest rates hikes from the US Federal Reserve and rampant inflation sent highly-valued stocks, including many technology names that had outperformed during the pandemic, crashing down.
Turmoil in the cryptocurrency market, sparked by the implosion of Sam Bankman-Fried’s FTX empire, saw digital tokens tumble from 2021’s record highs on worries over the risk of further contagion in the industry.
READ: From Meta to Coinbase: The Stocks That Torched Traders in 2022
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