Weekly Market Commentary

The First Quarter Ended on a Positive Note

Posted on April 3, 2023

Market Commentary by Larson COO Mitchell Wood

The final week of the first quarter ended on a positive note as all five indices closed higher. For the first time in recent memory, the MSCI World index saw the greatest gains followed not too far behind by the S&P 500.

The S&P 500 logged its third consecutive weekly gain after February and March’s initial volatility and stood as the index’s greatest weekly gain since November.

The week began with the news that a family-run bank from North Carolina named First Citizen’s Bancshares would be purchasing much of the Silicon Valley Bank assets from regulators. Additionally, Fed Vice Chairman Michael Barr reported to the Senate Banking committee midweek on the health of the banking sector, and specifically the details of the SVB failure.

The Financial sector weathered the news week favorably as the sector managed to close out week with gains in the middle of the pack.
This helped to curb some of the initial year-to-date losses which has placed this sector at the bottom of the list.
On an economic front, the quarter ended with the results of the Personal Consumption Expenditures. The 5.0 percent headline year-over-year reading for February’s PCE Price Index was a welcome reduction from January’s 5.3 percent number. This is the lowest number for the measure of consumer spending since September of 2021. The reduction in the PCE Price Index gave market analysts optimism that inflation is continuing to subside, relative to the recent peak.

Finally, Treasuries rose last week as the yield curve recovered from some of the drop experienced the week prior. The move was mostly in the shorter end of the curve which steepened slightly. This sent the Bloomberg Barclays Aggregate bond Index down, while mortgages saw greater losses for the week and moderate gains within the corporates.


The S&P 500® Index is a capitalization index of 500 stock-designed to measure performance of the broad domestic economy through changes in the aggregate market value of stock representing all major industries. https://us.spindices.com/indices/equity/sp-500

The Dow Jones Industrial Average® (The Dow®), is a price-weighted measure of 30 U.S. blue-chip companies. The index covers all industries except transportation and utilities. https://us.spindices.com/indices/equity/dow-jones-industrial-average

The NASDAQ Composite Index measures all NASDAQ domestic and international based common type stocks listed on The NASDAQ Stock Market. Today the NASDAQ Composite includes over 2,500 companies, more than most other stock market indexes. Because it is so broad-based, the Composite is one of the most widely followed and quoted major market indexes. https://indexes.nasdaqomx.com/Index/Overview/COMP

The MSCI World Index, which is part of The Modern Index Strategy, is a broad global equity benchmark that represents large and mid-cap equity performance across 23 developed markets countries. It covers approximately 85% of the free float-adjusted market capitalization in each country and MSCI World benchmark does not offer exposure to emerging markets.

The MSCI Emerging Markets (EM) Index is designed to represent the performance of large- and mid-cap securities in 24 Emerging Markets countries of the Americas, Europe, the Middle East, Africa and Asia. As of December 2017, it had more than 830 constituents and covered approximately 85% of the free float-adjusted market capitalization in each country. https://www.msci.com/

The S&P GSCI Crude Oil index provides investors with a reliable and publicly available benchmark for investment performance in the crude oil market. https://us.spindices.com/indices

Companies in the S&P 500 Sector Indices are classified based on the Global Industry Classification Standard (GICS®). https://us.spindices.com/indices

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