Major U.S. stock indexes had a relatively weak week ahead of the Easter weekend, enough to post a fifth straight month of gains.
The S&P 500 index is up 28% from October 2023 lows, the Nasdaq 100 is up 30% and the Dow Jones is up 23%. Still, March saw a notable narrative shift: small caps outperformed large caps and the energy sector outperformed other sectors.
U.S. economic growth beat previous estimates in the fourth quarter of 2023, while Federal Reserve members like Christopher Waller expressed opposition to a hasty rate cut.
Among mega-cap stocks, FedEx was the week's top performer, up 9%, while Nike was the biggest laggard, down nearly 7%. The price of gold reached a new all-time high of over $2,220 per ounce.
Cost of the Baltimore Bridge
Significant costs are expected following a cargo ship collision that led to the collapse of Baltimore's Francis Scott Key Bridge. President Joe Biden has pledged federal funding for reconstruction, while insurance companies, including Britannia P&I Club, may cover damages. Estimates for damage to the Baltimore Bridge suggest that insurance payouts could be close to the $1.5 billion from the 2012 Costa Concordia incident.
More:No rate cuts in March, but Fed Chair hints they're coming
Retirement crisis warning
Larry Fink, CEO of BlackRock, warned of a looming retirement crisis in the US and criticized the stand-alone retirement approach and the possible Social Security deficit by 2034. He is pushing for reforms and emphasizing the need for accessible retirement investments, taking a departure from Dutch policy was inspired. Guidelines.
A recovery for small-cap stocks?
Analysts pointed to a possible rebound for small-cap stocks if the Federal Reserve cuts interest rates. Small caps, typically emerging companies with market caps of less than $2 billion, are now undervalued compared to large caps with market caps of $10 billion or more. A soft landing for the U.S. economy could further fuel the small-cap recovery and make the Russell 2000 an attractive investment option.
Cocoa prices are skyrocketing
Cocoa prices jumped to $10,000 a tonne, up 240% from a year earlier, in line with gains in Nvidia shares, a favorite in the artificial intelligence space. Contributing to the increase are challenges in cocoa-growing regions, including climate change and disease, which threaten to turn chocolate into a luxury item and significantly impact Easter costs.
Benzinga is a financial news and data company headquartered in Detroit.
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