Market Briefings

The markets ended the week on a strong note, closing sharply higher on Friday, as strong earnings reports from mega-cap technology firms Alphabet (Google) and Microsoft, as well as inflation data in the U.S. that was in line with expectations, supported a rebound in market sentiment.

After a strong rally in the stock market in the last several weeks, markets have been pulling back in recent sessions. Market corrections are typical, especially after a 25% rally in the S&P 500 over the past six months, but the tone in the markets in seems to have shifted.

Markets got off to a shaky start to the week and the second quarter, as strong economic readings raised concerns about if and when the Fed will be able to start cutting rates.

The narrow market leadership over the past 12 months has captured investors' enthusiasm around an elite group of mega-cap tech stocks known as the Magnificent 7 - NVIDIA, Microsoft, Alphabet, Amazon, Meta, Apple, Tesla.

Last week, the Federal Reserve held its March FOMC meeting and press conference and also released an updated set of economic projections. The Fed left the fed funds rate on hold at 5.25% - 5.5%, but its updated "dot plot" still pointed to three rate cuts in 2024.