The main US stock indices ended the last trading week of the year mostly lower in thin trading as the S&P 500 finished 2022 down nearly 20%. However, we note that the S&P 500 Index remained above its intraday low recorded the week before. Consumer staples and materials shares fell the most, while consumer discretionary shares were resilient, thanks in part to strength in Target and several other retailers. There were few data reports or other macroeconomic catalysts to drive sentiment during the week. The global impact of China’s relaxation of COVID containment rules was therefore the key market driver of the week. Wednesday brought additional gloomy news on the US housing sector as pending home sales in November fell to the second-lowest level in two decades. October home prices fell somewhat less than expected, however (0.8% versus roughly 1.2%). Weekly jobless claims rose from 215,000 to 225,000, but in line with expectations and still below their mid-November peak of 241,000. The yield on the benchmark 10-year Treasury note rose over the week, touching its highest intraday level since November 14 on Friday morning. European shares pulled back during a week of thin trading. Chinese stocks rose as Beijing continued to ease coronavirus pandemic restrictions despite a surge in cases. Economic activity picked up in several cities in China where coronavirus cases have shown signs of peaking.