Weekly Market Commentary

The major benchmarks finished mixed last week, with corporate earnings grabbing the spotlight from a relatively light calendar of economic data. One item of note, the CBOE VIX Index, a gauge of "fear" and volatility, hit its lowest level since late 2021, closing the week at 16.77.

The major benchmarks ended the week higher last week, as investors balanced the likelihood of recession versus signs that inflationary pressures are abating.

The first quarter of 2023 ended up being a rollercoaster ride for investors, ultimately ending on a bullish note, with the S&P 500 TR Index up 7.50% for the quarter and the tech-stock heavy NASDAQ Composite recovering with a gain of 17.05%.

Looking at the top ETF performers in the first quarter, crypto and blockchain ETFs topped the leaderboard. Bitcoin surged 73% in the first quarter. QQQ was also a beneficiary of the tech rally, gaining 18% YTD as tech stocks return to bull market territory. The key factor driving tech names is the decline in rate pressures.

Index returns varied widely last week as the banking industry and recession worries weighed on small-cap and value names, with large-cap growth stocks benefiting the most from the reset in interest rate expectations.

Stocks were mixed last week as interest rate and growth expectations shifted in the wake of banking turmoil. And the key question is, that in light of the banking crisis, will the Fed take its foot off the tightening gas pedal or even put its foot on the brake?