Winthrop Partners’ Market and Economic Update 3-28-22

The Markets (as of market close March 25, 2022)

Wall Street closed higher for the second consecutive week, despite several days where stock values seesawed. The tech-heavy Nasdaq led the gainers, followed by the S&P 500, the Global Dow, and the Dow. The small caps of the Russell 2000 edged lower. Information technology was the worst-performing sector, while energy had the biggest gains. Investors mulled the impact of inflation and tightening monetary policy, while President Joe Biden and NATO allies leveled a new set of sanctions against Russia. Crude oil prices shot higher at the end of the week after reports of a missile strike at a Saudi Aramco facility.

Equities began last week in the red as hawkish comments from Federal Reserve Chair Jerome Powell and escalating crude oil prices weighed on investors. Last Monday saw the Dow dip 0.6%, the S&P 500 was flat, while the Nasdaq slid 0.4%. Crude oil prices, 10-year Treasury yields, and the dollar all advanced.

Stocks rebounded last Tuesday to close higher, despite Federal Reserve Chair Jerome Powell’s suggestion that higher interest-rate hikes may be needed to mitigate fast-rising inflation. Tech and growth shares rebounded from recent losses. The Nasdaq led the increase, climbing 2.0%, followed by the S&P 500 and the Russell 2000 (1.1%), the Global Dow (1.0%), and the Dow (0.7%). Ten-year Treasury yields continued to advance after gaining nearly 6 basis points to close at 2.37%. Crude oil and gold prices and the dollar all slid lower.

Equities couldn’t continue their rally last Wednesday, closing the day in the red. Investors backed away from stocks following news that there was no change in the Ukraine war, the likelihood of two 50 basis-point interest-rate increases, and weaker-than-expected new home sales figures. The Russell 2000 slid 1.7%, the Nasdaq lost 1.3%, the Dow fell 1.3%, the S&P 500 dipped 1.2%, and the Global Dow dropped 0.7%. Ten-year Treasury yields lost some momentum falling marginally to 2.32%. Crude oil prices topped $116.00 per barrel. The dollar and gold prices advanced.

In what may have been triggered by dip buyers, stocks closed higher last Thursday. Oil prices fell notably, down over 3.0% to $111.25 per barrel. New jobless claims fell to a more than 50-year low last week, while the number of unemployed continued to drop. Among the indexes, the Nasdaq led the way, advancing 1.9%, followed by the S&P 500 (1.4%), the Dow and the Russell 2000 (1.0%), and the Global Dow (0.5%). Ten-year Treasury yields rose 2 basis points to 2.34%. Gold prices jumped more than $25.00 to $1,962.40 per ounce. The dollar rose minimally.

Stocks closed mixed last Friday, as the S&P 500 and the Global Dow gained 0.5%, the Dow edged up 0.4%, the Russell 2000 was flat, and the Nasdaq slipped 0.2%. Ten-year Treasury yields added 15 basis points to close at 2.5%. Crude oil prices rose marginally to $113.00 per barrel. The dollar was flat, while gold prices fell. Click here for complete article:Winthrop Partners’ Market and Economic Update 3-28-22