Market Commentary — March 21, 2022
Last week’s market rally was historic given it was only the 5th time in market history that the S&P 500 gained at least 1% for 4 consecutive days. According to LPL’s Ryan Detrick, the recent market action is extremely bullish, with the market being up more the 20% each year it occurred, generating an average gain of 28%.
Stocks rallied last week due to multiple factors, ending a two-week losing streak. Falling oil prices, news that Russian debt avoided default and a 25 bps interest rate hike by the Fed, all helped boost market sentiment. The Fed’s rate hike was the first since 2018, signaling the Fed is willing to address inflation concerns.
While February retail sales figures disappointed, even though there was an upward revision for January, unemployment claims fell to a 52-week low, demonstrating continued strength in the labor market.
Treasury yields moved higher on the Fed action, especially on the short end of the yield curve which impacted mortgage rates.
In ETF news, ETF research guru Todd Rosenbluth is leaving CFRA and joining ETF Trends at their Head of ETF Research. Dave Nadig will move to the role of Futurist.
All the best to you in the week ahead!
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