This is a new installment in an ongoing series where Marc Bautis and colleagues comment on hot topics in the financial industry. This week, Kayla Waller, Financial Planner, fills us in.
April 2023 Market Summary
April was another positive month for stocks, with the exception of the small-cap Russell 2000 index. The Dow Jones Industrial Average rose 2.6%, the S&P 500 added 1.6%, and the NASDAQ gained 0.1%. The global equity picture was mixed; Developed Markets notched 2.9% higher, while Emerging Markets fell 1.1%. The Russell 2000 fell 1.8%, marking its third consecutive monthly decline.
Seven of the 11 US stock sectors were positive in April, and four rose 3% or higher (Consumer Staples, Communication Services, Financials, and Health Care). April was a down month for cyclically-sensitive sectors (Technology, Materials, Consumer Discretionary, and Industrials).
Signs pointed to tamer inflation in April as the YoY US Producer Price Index fell all the way to 2.75%. US Inflation broke below 5% as US Core Inflation hovered around 5.5%. The price of WTI crude oil rose 3.9% to $78.64 per barrel and Brent shot up 6.4% to $84.23. This caused the average price of regular gas to increase almost a quarter per gallon, to $3.77 at the end of April.
US Treasury yields broke 5% once again. The 3-Month and 6-Month Treasury Bills were the two durations to surpass 5% in April, at 5.10% and 5.06% respectively. April marked the 3-Month’s highest level for the since February 2007. The 10-Year’s yield of 3.44% was the lowest on the curve. Lastly, the 10 Year-3 Month Treasury Yield spread sunk to -1.65%, marking the spread’s largest inversion in history.
Episode 155 – Tax Strategies for a Highly Profitable Business With John Briggs