S&P 500 gains nearly 27% in 2021 | Dow posts 5-month win streak | Fed in focus for 2022

U.S. stocks finished their final trading session of the year lower, capping off a record-setting 2021 that came despite the persistent headwinds of Covid-19.

VIEW IN BROWSER | SUBSCRIBE FRI, DEC 31, 2021 EVENING BRIEF AS OF FRI, DEC 31, 2021 • 04:52 ET DJIA 36338.30 -0.16% -59.78 S&P 500 4766.18 -0.26% -12.55 NASDAQ 15644.97 -0.61% -96.59   Most Active DOW NAME LAST CHG %CHG AAPL 177.57 -0.63 -0.35% MSFT 336.32 -3.00 -0.88% INTC 51.50 -0.24 -0.46% S&P 500 NAME LAST CHG %CHG AAPL 177.57 -0.63 -0.35% F 20.77 +0.30 +1.47% AMD 143.90 -1.25 -0.86% NASDAQ NAME LAST CHG %CHG AAPL 177.57 -0.63 -0.35% AMD 143.90 -1.25 -0.86% NVDA 294.11 -1.75 -0.59%   EDITOR'S NOTE U.S. stocks dipped Friday in the final trading session of 2021 to close out a banner year in the face of the Covid-19 pandemic.   The three major averages all closed lower on the day, but finished December higher. The Dow Jones Industrial Average posted its fifth consecutive winning month, while the Nasdaq Composite saw its sixth straight monthly gain.   For the year, the indexes each notched double-digit gains. The S&P 500 returned a whopping 26.89% for its third winning year in a row. The Dow gained 18.73% and the Nasdaq Composite rose 21.4% in 2021, also notching three-year winning streaks.   "Stocks truly had a remarkable year in 2021—not only in terms of the robust gains generated but also in the lack of any significant pullbacks for the S&P 500 in a year of an ongoing pandemic," Keith Lerner, co-chief investment officer at Truist, said in a note Friday. The S&P 500 notched 70 record closes this year, the second-highest annual total behind 1995′s 77 closing highs. The benchmark index posted a record close at least once a month in 2021.   All 11 sectors in the S&P 500 finished 2021 higher, led by energy and real estate with more than 40% gains each. Devon Energy was the top-performing stock in the index this year, returning 178.6%.   Looking forward, many market participants anticipate tougher conditions for stocks in 2022 as the Federal Reserve wanes off its pandemic-era easy monetary policy. Still, strategists see gains ahead in the new year.   "While we don't expect 2022 performance to be as strong as 2021, we do expect the equity markets to continue trending higher," Wells Fargo Investment Institute's Chris Haverland said in a note. Hannah Miao | CNBC Associate Markets Reporter @HannahMiao_ Watch our live stream for all you need to know to invest smarter. TOP NEWS  S&P 500 ends 2021 with a nearly 27% gain, but dips in final trading day 2022 will be the 'do or die' moment for Congress to take action against Big Tech From SPACs to chips: Five ways 2021 may have forever changed the auto industry Travel in the omicron surge: What airlines owe you if they cancel your flight Tesla Energy asks employees to fight policy proposal that would make rooftop solar more expensive in California Bank of America allows remote work in early January, source says Biden to speak with Ukraine President Zelenskyy as Putin's military looms on Russia-Ukraine border Here's what to know about your 2022 Medicare costs Sweetgreen stock is one to watch in 2022 after this year's IPO Bank accidentally deposits $176 million into people's accounts on Christmas Day   TOP VIDEO International subscribers will be key for Disney+ growth, says Arjuna Capital's Lamb   CNBC PRO JMP downgrades Peloton to market perform, says consumer interest is slumping   SPECIAL REPORTS Financial help can lead to happiness. How to find the right professional for you Times Square set for New Year's Eve celebration as omicron spread looms   Unsubscribe Manage Newsletters Terms of Service Join the CNBC Panel Digital Products Feedback Privacy Policy   © 2021 CNBC LLC. All rights reserved. A property of NBCUniversal. 900 Sylvan Avenue, Englewood Cliffs, NJ 07632 Data is a real-time snapshot *Data is delayed at least 15 minutes. Global Business and Financial News, Stock Quotes and Market Data and Analysis. Data also provided by THOMSON REUTERS