Economic Update

Market Week: April 4, 2022

The Markets (as of market close April 1, 2022) 

Stocks closed generally higher last week, with only the Dow failing to post a gain. As has been the case since the end of February, investors have had to weigh the impact of the Russia-Ukraine war on the economy in general and inflation in particular. Adding to the list of concerns is the Federal Reserve’s monetary policy in response to surging inflationary pressures. Among the market sectors, real estate, utilities, and consumer staples were the best performers. Unlike the Dow, which slid 0.1% the Nasdaq and the Russell 2000 gained over 0.6%, while the Global Dow eked out a minimal gain. Crude oil prices fell more than $13.00 per barrel last week as worries over fuel shortages abated somewhat. Ten-year Treasury yields slipped as bond prices rose. Gold prices and the dollar also declined.

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Quarterly Market Review: January – March 2022

The Markets (first quarter through March 31, 2022) 

Wall Street dealt with several major issues in the first quarter of 2022. Investors had to evaluate the impact of rising inflation, higher interest rates, ongoing coronavirus concerns, and the Russia-Ukraine war. Each of the benchmark indexes listed here lost value by the end of the quarter. However, Treasury yields, the dollar, gold, and crude oil prices ended the first quarter higher. Among the market sectors, energy increased nearly 40.0%, while utilities climbed about 5.0%. The remaining sectors ended the quarter in the red, with consumer services (-12.0%) and information technology (-8.0%) losing the most.

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Market Week: March 28, 2022

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.

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Market Week: March 21, 2022

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.

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Market Week: March 14, 2022

The Markets (as of market close March 11, 2022) 

Each of the benchmark indexes listed here closed lower for the second straight week. The war in Ukraine continued, with Ukraine’s top diplomat indicating he saw no progress in talks with Russia. Inflation continued to run hot ahead of this week’s Federal Reserve meeting. During the week, markets oscillated between panic selling and dip buying. And the volatility wasn’t restricted to stocks — crude oil prices and bond yields also swung higher and lower. By the end of the week, the Nasdaq, the S&P 500, and the Dow fell the furthest. Crude oil prices dipped about $5.00 per barrel. Gold prices rose nearly 1.0%. The dollar inched higher, while 10-year Treasury yields added 28 basis points.

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Market Week: March 7, 2022

The Markets (as of market close March 4, 2022) 

Wall Street was hit hard last week as traders moved from stocks to bonds and gold. Each of the benchmark indexes listed here lost value, with the Global Dow dropping more than 4.0% and the Nasdaq declining nearly 3.0%. The Russian escalation of the war in Ukraine eclipsed strong economic data at home, including a solid jobs report. The crisis in Ukraine has boosted commodities, particularly crude oil prices, which rose more than 25.0% last week. Federal Reserve Chairman Jerome Powell said he would support a 25-basis point interest rate increase in March as inflation has continued to soar.

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Market Month: February 2022

The Markets (as of market close February 28, 2022)

Wall Street opened the month on a high note, with each of the benchmark indexes advancing. A stronger-than-expected jobs report and solid fourth-quarter corporate earnings data helped support equities. Nevertheless, concerns about the Russia-Ukraine situation began to worry investors. Natural gas and crude oil prices climbed higher. Throughout much of February, the impending crisis in Eastern Europe seemed to displace thoughts about a likely interest-rate hike from the Federal Reserve in March.

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Market Week: February 28, 2022

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

Stocks closed mostly higher last week, despite a tumultuous week with the Russian invasion of Ukraine. Of the benchmark indexes listed here, only the Dow and the Global Dow closed the week in the red. The Russell 2000, the Nasdaq, and the S&P 500 each posted solid gains. While the world reacted to the conflict in Eastern Europe, traders sought domestic stocks, driving values higher. Apparently, some investors may be viewing the Russia-Ukraine conflict as a reason to believe the Federal Reserve may not be quite so quick to jack up interest rates. However, with prices continuing to rise even before the turmoil in Europe, inflationary pressures are likely to accelerate due to disruptions caused by the war, which would seem to increase the likelihood of a more aggressive stance by the Fed. Much is still to be determined in the weeks ahead.

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Market Week: February 21, 2022

The Markets (as of market close February 18, 2022) 

Last week, Wall Street reacted to the ongoing Russia-Ukraine conflict by moving from stocks to bonds, the dollar, and gold. Investors were faced with rising fears that a Russian invasion of the Ukraine will engulf Europe and the United States, worsen global supply bottlenecks, and further accelerate inflation. Stocks continued to track lower despite solid fourth-quarter earnings growth. Each of the market sectors ended the week lower, with the exception of consumer staples, which managed to eke out a 0.1% gain. Information technology dipped over 1.0%, helping to pull the Nasdaq down 1.8% for the week. The Global Dow and the Dow led the declines among the benchmark indexes listed here. Long-term Treasury yields slipped two basis points. Crude oil prices fell nearly $2.00 to $91.56 per barrel. Gold prices continued to show strength, advancing for the second consecutive week.

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Market Week: February 14, 2022

The Markets (as of market close February 11, 2022) 

The major benchmark indexes closed last week lower. Rising tensions over the Russia-Ukraine situation
coupled with rising inflation made investors a bit skittish towards stocks. A higher-than-expected jump in the
Consumer Price Index added to jitters over an accelerated tightening of the Federal Reserve’s monetary
policy. The Nasdaq, the S&P 500, and the Dow lost value last week, while the Russell 2000 and the Global
Dow advanced. As of late Friday afternoon, concerns increased that Russia could invade Ukraine “any day
now.” An invasion would likely spur sanctions against Russia’s exports of oil and gas, causing supply to
decrease and prices to rise. Crude oil prices rose nearly 1.7% last week following Friday’s 4.0% jump in the
price per barrel. Ten-year Treasury yields were volatile last week, reaching 2.0%, only to drop back down to
1.95% by the end of the week. Gold prices rose for the second consecutive week. Meanwhile,
fourth-quarter earnings data continued to be mainly positive, with 78% of the S&P 500 companies
exceeding earnings estimates.

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