Winthrop Partners’ Market and Economic Outlook 4-11-22

The Markets (as of market close April 8, 2022)

Stocks lost value last week as each of the benchmark indexes listed here finished lower. The Nasdaq and the Russell 2000 were hit the hardest, followed by the Global Dow, the S&P 500, and the Dow. Ten-year Treasury yields jumped 34 basis points as bond prices slid lower. The dollar strengthened against a bucket of currencies, and gold prices climbed higher. Crude oil prices declined by $1.66 per barrel over the week. Most of the market activity was influenced by the release of the minutes from the last meeting of the Federal Open Market Committee, which revealed the Fed’s intend to aggressively target inflation with monetary-policy tightening. The minutes also indicated that, but for the disruption of Russia’s invasion of Ukraine on global markets, the Fed would have raised interest rates by 50 basis points last month.

Wall Street began the week on a positive note. Each of the benchmark indexes listed here closed last Monday higher, led by the Nasdaq, which added 1.9%. The S&P 500 climbed 0.8% and the Dow rose 0.3%. Tech shares led the upswing, while consumer discretionary and communication services paced the sectors. Ten-year Treasury yields added 3.5 basis points to reach 2.41%. The dollar and gold prices also advanced. Crude oil prices rose $4.34 to $103.61 per barrel.

Stocks retreated last Tuesday, with each of the indexes listed here closing in the red. Most equity sectors fell with information technology and consumer discretionary giving back Monday’s gains. The Russell 2000 (-2.4%) and the Nasdaq (-2.3%) fell the furthest, followed by the S&P 500 (-1.3%), the Global Dow (-1.2%), and the Dow (-0.8%). The dollar and 10-year Treasury yields advanced, while crude oil prices fell to $101.21 per barrel.

Last Wednesday saw stocks fall for the second consecutive day. The minutes from the last Federal Reserve meeting in March showed that officials were focused on slowing inflation by raising interest rates and quickly reducing the Fed’s balance sheet. Tech shares fell, pulling the Nasdaq down 2.2%. The Russell 2000 dropped 1.4%, while the S&P 500 and the Global Dow lost 1.0%. The Dow slid 0.4%. Ten-year Treasury yields jumped 5.3 basis points to 2.6%. Crude oil prices decreased $5.11 to $96.85 per barrel. The dollar and gold prices were relatively flat. Among the market sectors, utilities, real estate, health care, and consumer staples advanced, while information technology dropped 2.6%.

Stocks rebounded last Thursday following a two-day slump. The S&P 500 added 0.4% as several of the market sectors advanced, with energy, health care, and consumer staples leading the gainers. The Dow rose 0.3% and the Nasdaq eked out a 0.1% gain. The Russell 2000 and the Global Dow slipped. Ten-year Treasury yields rose to 2.65%, the dollar and gold prices increased, and crude oil prices rose to $97.13 per barrel.

Wall Street closed mostly lower last Friday as stocks and bond prices declined. The Dow (0.4%) and the Global Dow (0.6%) closed higher, but the Nasdaq (-1.3%), the Russell 2000 (-0.8%), and the S&P 500 (-0.3%) ended the day in the red. Treasury prices slid, driving yields up 6 basis points to 2.71%. Crude oil prices increased $1.83 to $97.86 per barrel. The dollar and gold prices also advanced.  Click here for the entire article:  Winthrop Partners’ Market and Economic Update 4-11-21