Market developments
Equities:
After another negative week in stock markets, the S&P 500 closed the quarter with the lowest value in almost two years. This risk-off environment is a reaction to the expectation of a persistently hawkish Fed that will raise rates to bring inflation back to 2%.
Fixed income:
On Tuesday, the U.S. Treasury 10-year yield reached a weekly high of 3.95%, the highest since 2010. The surge in yields is another market reaction to expectations for further hikes from the Federal reserve.
Commodities:
West Texas Intermediate Crude Oil ended the week 96 cents higher the previous week’s close. However, this is the first quarter of price declines since 2020, with a drop in price of almost 25%. The cause for this price drop is a decrease in the projected energy demand due to the dampened outlook for global growth.