Market developments
Equities:
The S&P 500 Index saw modest weekly gains, propelling equities to their most impressive first-quarter performance since 2019, bolstered by the latest U.S. GDP figures. These numbers fueled speculation that the Federal Reserve might achieve a soft economic landing, contributing to a market environment that led to a 13% quarterly surge in the S&P500 (CAD), notably outshining the tech-heavy Nasdaq.
Fixed income:
The fixed income arena remained dynamic, with minor fluctuations reflecting the market’s response to evolving economic indicators and central bank signals. Although the different Bond indexes experienced a slight increase, the bond market’s reaction to the Federal Reserve’s messages and the broader economic data was measured. This cautious approach in the bond market underscores the intricate balance between seeking yield and navigating the uncertainties tied to monetary policy and economic growth trajectories.
Commodities:
In a volatile week, crude oil prices overcame initial setbacks from rising U.S. inventories, closing with a 2.95% gain. The increase in stockpiles momentarily dampened the tight supply outlook, but geopolitical tensions and OPEC+’s production cuts provided upward momentum.