Markets remained mixed between March 26 and April 1 as investors remained uncertain about the future of the Federal Reserve cutting interest rates.
Markets lost on Tuesday in anticipation of the release of forthcoming inflation data. The Dow Jones Industrial Average lost 0.1%, the S&P 500 lost 0.3% and the Nasdaq lost 0.4%. The Utilities Select Sector, the Energy Select Sector and the Technology Select Sector declined 1.1%, 0.8% and 0.4%, respectively.
The Chicago Board Options Exchange Volatility Index can be used as a gauge regarding investor sentiment pertaining to equity markets. The CBOE Volatility Index rose 0.4% to $13.24 on Tuesday.
Markets were skittish in anticipation of the release of the Personal Consumption Expenditure index on Friday.
By Wednesday’s close, the three indexes ended in the green to conclude a continued three-day loss. The Dow added 1.2%, the S&P 500 added 0.9% and the Nasdaq added 0.5%. The Utilities Select Sector, the Real Estate Select Sector and the Health Care Select Sector increased 2.8%, 2.5% and 1.6%, respectively.
The CBOE Volatility Index fell 3.5% to $12.78.
The three indexes closed mixed on Thursday as investors awaited the release of key inflation data on Friday despite markets being closed for Good Friday. The Dow climbed 0.1%, the S&P 500 climbed 0.1% and the Nasdaq lost 0.1%.
The Energy Select Sector added 1.1%.
The CBOE Volatility Index rose 1.8% to $13.01.
The Bureau of Labor Statistics reported that jobless claims fell 2,000 to 210,000 for the week ended March 23. Forthcoming jobless claims data can be indicative of the future of rate cuts. A stronger labor market may force the Fed to maintain an elevated funds rate for a longer portion of time.
Markets were closed on Friday in observance of Good Friday.
The Bureau of Economic Analysis announced that Gross Domestic Product rose 3.4% for the fourth quarter which beat the consensus estimate of 3.2%. The Bureau of Economic Analysis also detailed that Personal Consumption Expenditure or PCE rose 2.5% year over year in February.
Core PCE, which excludes food and energy items, rose 0.3% in February.
The three major indexes closed mixed on Monday to begin the second quarter of 2024. The Dow declined 0.6%, the S&P 500 declined 0.2% and the Nasdaq increased 0.1%. The Real Estate Select Sector, the Health Care Select Sector and the Consumer Staples Select Sector declined 1.8%, 0.9% and 0.8%, respectively.
The CBOE Volatility Index rose 4.9% to a value of $13.65.
Investors should look forward to statements delivered by Fed officials in the upcoming week which will provide color on the future of rate hikes. Subsequently, investors should gain exposure to industries which benefit from interest rate cuts.
