Broker Check

Market Recap

April 01, 2023

Markets shook off concerns over bank failures to rebound in the second half of March. The Federal Reserve (the Fed) in partnership with the U.S. Treasury Department and the Federal Deposit Insurance Corporation (FDIC) moved decisively to ease concerns over potential bank failures. After spiking on March 13th, the index that measures market volatility, the CBOE Volatility Index, fell by 29%.

In other news, the Fed predictably raised interest rates by another quarter of a percent (0.25%) during the latest meeting. Markets initially dipped although they quickly shook off interest rate anxiety to close higher.

On the inflation front, a report released last Friday showed that the U.S. Federal Reserve’s preferred gauge for tracking inflation rose 0.3% from January to February, down sharply from the 0.6% rate in the previous monthly update. On an annual basis, the Personal Consumption Expenditures Price Index rose 5.0%, down from the prior month’s 5.3% figure.

Reviewing returns for the second half of March, the major markets all rebounded. As of March 31st, the Dow rose 1,400 points (4.39%), the S&P 500 grew 217 points (5.59%) and the NASDAQ jumped 788 points (6.89%).

The views and opinions expressed herein are those of the author(s) noted and may or may not represent the views of Capital Analysts or Lincoln Investment. The material presented is provided for informational purposes only. Past performance is no guarantee of future results. No person or system can predict the market. There is no guarantee that any strategies discussed will result in a positive outcome. All investing involves risk and no investment strategy can guarantee a profit or protect against loss, including the potential loss of principal. S&P 500 Index is an index of 500 of the largest exchange-traded stocks in the US from a broad range of industries whose collective performance mirrors the overall stock market. The NASDAQ is an index that tracks the cumulative results on a market capitalization basis of all stocks trading in the NASDAQ system. The Dow Jones Industrial Average is a widely watched index of 30 American stocks thought to represent the pulse of the American economy and markets. Investors cannot invest directly in an index. Diversification does not guarantee a profit or protect against a loss.