The Markets (as of market close April 8, 2022)
Stocks lost value last week as each of the major benchmark indexes finished lower. The Nasdaq and the Russell 2000 were hit the hardest, followed by the Global Dow, the S&P 500, and the Dow. Ten-year Treasury yields jumped 34 basis points as bond prices slid lower. The dollar strengthened against a bucket of currencies, and gold prices climbed higher. Crude oil prices declined by $1.66 per barrel over the week. Most of the market activity was influenced by the release of the minutes from the last meeting of the Federal Open Market Committee, which revealed the Fed’s intent to aggressively target inflation with monetary-policy tightening. The minutes also indicated that, but for the disruption of Russia’s invasion of Ukraine on global markets, the Fed would have raised interest rates by 50 basis points last month.
Eye on the Week Ahead
Inflationary data is available this week with the release of the Consumer Price Index, the Producer Price Index, import and export prices, and the retail sales report. Since February 2021, the CPI is up 7.5%, producer prices have advanced 10.0%, import prices have climbed 10.9%, and export prices have risen 16.6%.
Data sources: Economic: Based on data from U.S. Bureau of Labor Statistics (unemployment, inflation); U.S. Department of Commerce (GDP, corporate profits, retail sales, housing); S&P/Case-Shiller 20-City Composite Index (home prices); Institute for Supply Management (manufacturing/services). Performance: Based on data reported in WSJ Market Data Center (indexes); U.S. Treasury (Treasury yields); U.S. Energy Information Administration/Bloomberg.com Market Data (oil spot price, WTI, Cushing, OK); www.goldprice.org (spot gold/silver); Oanda/FX Street (currency exchange rates). News items are based on reports from multiple commonly available international news sources (i.e., wire services) and are independently verified when necessary with secondary sources such as government agencies, corporate press releases, or trade organizations. All information is based on sources deemed reliable, but no warranty or guarantee is made as to its accuracy or completeness. Neither the information nor any opinion expressed herein constitutes a solicitation for the purchase or sale of any securities, and should not be relied on as financial advice. Forecasts are based on current conditions, subject to change, and may not come to pass. U.S. Treasury securities are guaranteed by the federal government as to the timely payment of principal and interest. The principal value of Treasury securities and other bonds fluctuates with market conditions. Bonds are subject to inflation, interest-rate, and credit risks. As interest rates rise, bond prices typically fall. A bond sold or redeemed prior to maturity may be subject to loss. Past performance is no guarantee of future results. All investing involves risk, including the potential loss of principal, and there can be no guarantee that any investing strategy will be successful.
The Dow Jones Industrial Average (DJIA) is a price-weighted index composed of 30 widely traded blue-chip U.S. common stocks. The S&P 500 is a market-cap weighted index composed of the common stocks of 500 largest, publicly traded companies in leading industries of the U.S. economy. The NASDAQ Composite Index is a market-value weighted index of all common stocks listed on the NASDAQ stock exchange. The Russell 2000 is a market-cap weighted index composed of 2,000 U.S. small-cap common stocks. The Global Dow is an equally weighted index of 150 widely traded blue-chip common stocks worldwide. The U.S. Dollar Index is a geometrically weighted index of the value of the U.S. dollar relative to six foreign currencies. Market indexes listed are unmanaged and are not available for direct investment.