Weekly Market Update 03/27/2022
by Justin J. Long CFP®, on Mar 27, 2022
My apologies for the tardiness on the update this weekend, I was serving as the best man in my best friend's wedding at Bear's Best here in Las Vegas. Congratulations to the newlyweds, Mr. and Mrs. Stetter! How did you spend your weekend?
And now on to the recap of this week:
Week in Review: The rally in equities continued for a second week
The stock market faced some volatility in recent days, but the S&P 500 (+1.8%) and Nasdaq (+2.0%) were able to record solid gains for the week while the Dow (+0.3%) underperformed, ending the week just above its flat line. The Russell 2000 also lagged, shedding 0.4%.
The S&P 500 battled with its 200-day moving average since last Friday, but it was able to end the week above that mark, touching a six-week high during the final session of the week.
Ten sectors ended the week in positive territory with energy (+7.4%), materials (+4.1%), and utilities (+3.5%) leading the way while health care (-0.2%) recorded a slight loss after outperforming earlier this month.
Energy remained supported by crude oil, which gained $10.80 or 10.5% to end the week at $113.83/bbl. The ongoing Russia-Ukraine conflict remained a supportive factor for oil and other commodities, explaining the outperformance in the materials sector where steelmakers and fertilizer producers led the way.
The week ended with reports of the potential for another release of oil from the strategic reserve while Chevron (CVX) reportedly received clearance to resume operations in Venezuela. On a related note, a Russian energy official reportedly said that friendly countries like China and Turkey could pay for oil and gas in rubles, domestic currency, and bitcoin while unfriendly countries would have to pay in rubles and/or gold.
The top-weighted technology sector (+2.3%) finished the week ahead of the broader market, but it faced some pressure on Friday as Treasuries widened this week's losses, sliding to fresh lows for the year, after Citigroup forecast that the Fed will raise rates by 50 bps at the next four policy meetings. Both, the 2-yr yield and the 10-yr yield increased by 34 bps for the week to a respective 2.29% and 2.49%.
|INDEX||STARTED WEEK||ENDED WEEK||CHANGE||% CHANGE||YTD %|
As always, it is my pleasure to bring you this weekly update. If this or anything else is causing you pause or you would like further details, please feel free to reach out to me and we can schedule some time to chat.
Justin J. Long CFP®
Diazo Wealth Group
Upcoming Economic Calendar
Source: 1. FactSet
Source: Week in perspective provided by Briefing.com. Briefing.com offers live market analysis on their web site www.Briefing.com.
The data provided is for informational purposes only and is not an endorsement of any security, mutual fund, sector, or index. The information contained here is not guaranteed as to accuracy or completeness. All economic and performance information is historical and does not guarantee future results.
The Dow Jones Industrial Average is a price-weighted index comprising 30 widely traded blue chip U.S. common stocks. The NASDAQ Composite Index is a market-value-weighted index of all common stocks listed on the NASDAQ stock exchange. The S&P 500 Index tracks the performance of 500 of the largest publicly traded companies in the United States. The MSCI Europe, Australasia, and Far East (EAFE) Index tracks the performance of publicly traded large- and mid-cap stocks of companies in those regions. The Cboe Volatility Index (VIX) shows the market’s expectation of 30-day volatility and is constructed using the implied volatilities of a wide range of S&P 500 Index options. Weekly and year-to-date figures for the VIX show percentage changes, not investment returns. The Russell 2000 Index tracks the performance of approximately 2,000 publicly traded small-cap companies in the United States. It is not possible to invest directly in an index.
The Treasury yield curve is derived from available U.S. Treasury securities trading in the market and is provided directly by the U.S. Federal Reserve. The spread measures the difference in yield between two government securities. A normal (positive) yield curve occurs when longer-term rates are higher than shorter-term rates. The opposite holds true for an inverted yield curve. Year-to-date changes in U.S. Treasury bond yields are shown in basis points (bps). One hundred basis points equals one percent.
Oil prices are represented by West Texas Intermediate (WTI) crude oil.
The G20 countries comprise a mix of the world’s largest advanced and emerging economies, representing about two-thirds of the world’s population, 85% of global gross domestic product, and over 75% of global trade.
Innovative Adviser Solutions, LLC, a registered investment adviser, dba Diazo Wealth