US Stock Markets Ended March 11, 2022
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Equities fell last week for the 7th time in 2022. The S&P 500 index returned -2.84% as geopolitical risks continued to weigh on equity returns. Last week, inflation fears gripped markets after the CPI was announced 7.9% higher than last February, the highest in over 40 years. Energy prices skyrocketed as the Russian war in Ukraine pushed the odds of a supply shock higher. Oil peaked on Tuesday at $123.70 per barrel for WTI after the U.S. decided to ban imports of Russian oil. Natural gas closed the week at $4.773 per mmbtu, the highest price in the month of March since 2008, which was prior to the shale revolution. Energy was the top performing sector in the S&P 500 as oil servicing companies Baker Hughes Co., Schlumberger LTD and Halliburton Co. were 3 of the 5 top performing names in the S&P 500 last week. Inflation worries also pushed the 10-year Treasury yield back over 2% which weighed on growth stocks as the S&P 500 Growth index returned -3.28% last week. This pushed the S&P 500 Growth index to a -17.18% return year to date compared to the S&P 500 Value index which is only down -5.24% in 2022. There were some individual technology names that announced fantastic quarterly results. MongoDB Inc. rallied 18.58% Wednesday after announcing revenue for the quarter beat expectations by 10% and year over year grew 56%. CrowdStrike also beat revenue expectations and boosted their revenue guidance ahead of expectations after they announced expectations 47-49% growth in the year to come, shares rallied 12.50% Thursday as a result. Looking ahead to next week, geopolitical headline risk will likely move markets. We continue to be constructive on U.S. equities and view this correction as an opportunity to leg into stocks at attractive prices despite the macro risks. We continue to favor smaller cap quality names as attractive places in the market.
Posted on Monday, March 14, 2022 @ 8:24 AM

These posts were prepared by First Trust Advisors L.P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.