Value Tops Growth in 2022

Value stocks outperformed their growth counterparts in 2022 as the Federal Reserve hiked interest rates

Trader on NYSE Floor, 09/16/2022

Spencer Platt / Staff / Getty Images

2022’s declines for the three major U.S. stock indexes were the biggest since the 2008 financial crisis, driven largely by a rout in growth stocks amid worries the Federal Reserve’s aggressive interest rate hikes would slow earnings growth. 

Growth stocks were under pressure for much of last year and largely underperformed economically-sensitive value stocks, breaking a trend that has lasted for most of the last decade.

Apple (AAPL), Alphabet (GOOGL), Microsoft (MSFT), Nvidia (NVDA), Amazon (AMZN) and Tesla (TSLA) shares were among the worst drags on the S&P 500 Growth Index, with shares down between 28% and 66% last year.

The S&P 500 Growth Index fell about 30.1% last year, while the S&P 500 Value Index was down about 7.4%, with investors preferring high dividend-yielding sectors with steady earnings like energy. The energy sector recorded the biggest gains of any sector, adding 59% as oil prices surged.

S&P 500 Growth vs. Value in 2022


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