Winthrop Partners’ Market and Economic Update 3-21-22

The Markets (as of market close March 18, 2022) Wall Street rebounded last week, enjoying its best weekly performance since November 2020. The Nasdaq advanced more than 8.0% as tech shares climbed higher. The S&P 500 rose more than 6.0%, posting its first weekly gain in three weeks. The Federal Reserve’s moderate 25-basis point interest-rate hike, coupled with a projection of future rate hikes this year, gave investors more clarity on the direction of monetary policy. While inflation is showing no signs of slowing, the Russia-Ukraine war has impacted energy prices, tightened financial conditions, and moderated economic growth prospects abroad all of which could lead to higher inflation and slower economic growth in the United States. Investors will have to continue to monitor all of these factors in gauging their impact on the market. Stocks fell last Monday to begin the week in the red for the second consecutive week. Equities couldn’t hold on to gains achieved earlier in the day, as investors were awaiting the Federal Reserve’s upcoming monetary policy stance. The Dow jumped as many as 451 points, only to close the day flat. The Nasdaq fell 2.0%, the Russell 2000 dropped 1.9%, the S&P 500 slid 0.7%, and the Global Dow dipped 0.2%. Ten-year Treasury yields climbed nearly 14 basis points to close at 2.14%. The dollar and gold values declined. Crude oil prices dropped more than $7.00 to $101.94 per barrel. Last Tuesday saw stocks rally as crude oil prices continued to tumble. Strength in consumer discretionary and information technology helped drive the S&P 500 up 2.1%. The Nasdaq climbed nearly 3.0% and the Dow advanced 1.8%. The Russell 2000 (1.4%) and the Global Dow (0.2%) also posted gains. Crude oil prices slid to $95.20 per barrel, a drop of nearly $8.00. The dollar and 10-year Treasuries rose marginally, while gold prices fell. China imposed lockdown restrictions on several major regions in response to another COVID outbreak. Stocks continued their rally last Wednesday after Federal Reserve Chair Jerome Powell suggested that the economy is very strong. Earlier in the day, the Federal Open Market Committee hiked interest rates 25 basis points (see below). By the close of trading, the Nasdaq (3.8%) and the Russell 2000 (3.1%) made the largest advances, followed by the S&P 500 and the Global Dow, which climbed 2.2%. The Dow added 1.6%. Ten-year Treasury yields inched up to 2.18%. The dollar and gold prices decreased. Crude oil prices dipped again, falling to $95.08 per barrel.
Equities advanced for the third straight day last Thursday, led by the Russell 2000 (1.7%) and the Global Dow (1.4%). The Nasdaq, the S&P 500, and the Dow each gained roughly 1.25%. Each of the market sectors closed in the black, with energy up 2.9%. Ten-year Treasury yields were flat. The dollar declined, while gold prices rose. Crude oil prices reversed a downward trend, climbing over $8.00 to $103.62 per barrel. Last Friday was another solid day for stocks, which posted their fourth consecutive day of gains. The Nasdaq continued its rally, gaining 2.1% by the close of trading, followed by the S&P 500, the Russell 2000, the Dow, and the Global Dow. Crude oil prices advanced for the second consecutive day, adding nearly $1.70 to $104.91 per barrel. The dollar inched higher, while gold prices dipped. Ten-year Treasuries slid 4.4 basis points to 2.14%.  Click here for the full article: Winthrop Partners Market and Economic Update 3-21-22