Higher Interest Rates Weigh on Stocks in the Third Quarter The S&P 500 rose to the highest level since March 2022 early in the third quarter; however, fears of a rebound in inflation and concerns about a future economic slowdown weighed on the major indices in August and September. As a result, the S&P 500 finished in the red for the third quarter. The S&P 500 started the third quarter largely the same way it ended the second quarter – with gains. Stocks rose [...]

Declining Inflation and Resilient Growth Push Stocks Higher in Q2 The S&P 500 ended the second quarter and first half of 2023 at a 14-month high and most major stock indices logged solid gains in the second quarter following a pause in the Fed’s rate hike campaign, stronger-than-expected corporate earnings (especially in the tech sector) and the relatively drama-free resolution of the debt ceiling. The second quarter began with markets still in the throes of the regional bank crisis following the March failures of [...]

Markets Show Resilience to Start 2023 Markets started 2023 with strong gains in January, which were primarily driven by continued declines in widely followed inflation indicators. The decline in price pressures was coupled with surprisingly resilient economic data, especially in the labor market. Those forces combined to increase investors’ hopes that the Fed could deliver an economic soft landing, whereby the economy slows but avoids a painful recession while inflation moves close to the Fed’s target. Additionally, corporate earnings for the fourth quarter of [...]