Shares have been punished by traders fearing a recession, with markets weighed down by Russia’s invasion of Ukraine, high inflation and rising interest rates.Both US and European indices closed their final sessions of the year in the red. For the year, Frankfurt was down more than 12 per cent and Paris lost 9.5 per cent for their worst performances since 2018. London, however, was up 0.9 per cent in 2022 as the energy sector was buoyed by soaring energy prices.It was Wall Street’s worst annual drop since 2008, with the S&P 500 index down around 20 per cent and the tech-heavy Nasdaq losing about 30 per cent for the year.The fall ranks behind the financial crisis of 2008, stock market crash of 1974 and dotcom bubble implosion of 2002.It has been “a terrible year,” chief investment strategist at CFRA Research Sam Stovall said.Tech sector hitWith borrowing becoming more expensive, investments in companies, particularly in the tech world, have suffered.The Nasdaq, where major tech stock