Economic Update
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.
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.
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.
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.
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.
Market Week: February 7, 2022
The Markets (as of market close February 4, 2022)
Last week was notable for a stronger-than-expected jobs report and mixed fourth-quarter earnings data. Stock values rose and fell throughout the week, ultimately closing higher. Crude oil prices rose for the seventh consecutive week, as prices near an eight-year high. A cold snap in the United States and concerns about the Ukrainian situation contributed to the raise in the prices of natural gas and oil. Each of the benchmark indexes listed here ended the week higher, led by the Nasdaq, which had one of its worst days last Thursday, only to be followed by one of its best performances. The large caps of the S&P 500 and the Dow pushed higher. The Global Dow gained over 2.0%, and the small caps of the Russell 2000 advanced 1.7%. The dollar fell, while gold prices climbed higher.
Market Month: January 2022
The Markets (as of market close January 31, 2022)
Stocks ended January lower as investors dealt with concerns over inflation, the prospects of rising interest rates, and the pace of global economic recovery. The start of fourth-quarter corporate earnings season in January was positive, but not as robust as was seen in December. While the economy advanced at an annualized rate of nearly 7.0% in the fourth quarter, 2022 is expected to see a slowdown triggered by ongoing coronavirus disruptions and fading fiscal support. Escalating tensions between the United States and Russia offered further market agitation.
Market Week: January 31, 2022
The Markets (as of market close January 28, 2022)
A very turbulent week, marked by volatility, ended with a robust finish. Last Friday’s gains were enough to push several of the benchmark indexes higher by the end of the week. The Dow advanced 1.3% and the S&P 500 gained 0.8%. A late-week tech rally was enough to move the Nasdaq back to where it began the week. Crude oil prices advanced for the sixth straight week, with prices reaching a nearly seven-year high. With supplies remaining limited, more projections are pointing to a return to $100.00 per barrel. Ten-year Treasury yields have risen 27 basis points since the beginning of January, while the dollar moved 1.7% higher. Gold prices, which had been gaining ground, fell back last week. Fourth-quarter corporate earnings have been generally favorable, with about 80% of the companies that have reported earnings so far this season beating projections.
Market Week: January 24, 2022
The Markets (as of market close January 21, 2022)
Volatility has engulfed the markets this month and is showing no signs of letting up, impacted by a more hawkish Federal Reserve stance, economic disruptions from Omicron, and risks to company profits due to rising costs. Fourth-quarter 2021 corporate earnings season has begun with uneven results so far. Inflation continues to hover over investors as they anticipate a bump in interest rates for the first time in three years, with the first increase likely coming in March. Demand for 10-year Treasuries has driven prices higher, sending yields lower for the first time in five weeks. With last week’s losses, both the Nasdaq and the Russell 2000 have declined nearly 12.0% in January. The Nasdaq is in correction territory, down over 10.0% from its November peak, hitting its lowest level since June 2021.
Market Week: January 18, 2022
The Markets (as of market close January 14, 2022)
Equities closed generally lower last week, with only the Global Dow ending the week in the black. Inflation, or more likely the Federal Reserve’s response to rising prices, may have influenced investors. Markets are still adjusting to the anticipated tighter monetary policy from the Fed, which is planning on raising interest rates several times this year. The central bank is also considering reducing the size of its balance sheet, which means less demand for bonds. Ten-year Treasury yields ended the week flat. The dollar dipped lower, while crude oil prices rose nearly 7.0%, reaching $84.23 per barrel. Gold advanced, but remains marginally below its 2021 year-end price.