The stock market is heading into what promises to be a volatile second quarter, but April is traditionally the best month of the year for stocks. The major indices were higher in March, but they turned in a weak performance for the first quarter, the worst since the pandemic. Investors have been worried about rising interest rates, the war in Ukraine and inflation, which was made even worse by disruptions in commodities exports from both Russia and Ukraine. … The Dow was off 4.6% for the first quarter, while the S&P 500 was down 5%. The worst performer by far was the Nasdaq, down 9.1%. In the past week, the Dow and S&P were slightly negative while the Nasdaq was flat. Interest rates also moved dramatically during the quarter, with the benchmark 10-year Treasury yield temporarily touching a high of 2.55% in the past week, after starting the quarter at 1.51%. On Friday… the 2-year yield, which most reflects Fed policy, was at 2.43%. The 2-year was yielding 0.73% at the beginning of the year.
Source: CNBC – Bonds
