The week 21.03.2022 – 25.03.2022

For the second week in a row, US stocks rose, with the S&P 500 extending its recovery from its low in early March. However, it was unclear whether the markets had bottomed out following their poor start to the year in Q1 or if this was a counter-trend rally. The ongoing conflict in Ukraine has fuelled the uncertainty, with ceasefire talks failing to provide hope while the US and other global allies continue to impose sanctions on Russia. Furthermore, the markets appeared to continue to take in stride growing expectations that the Fed will ramp up its monetary policy tightening campaign, bolstered by Chairman Jerome Powell’s hawkish remarks this week. Although economic data was scarce, a slew of preliminary global manufacturing and services led by an unexpected acceleration in manufacturing growth in the United States, came in well ahead of expectations. A larger-than-expected decrease in weekly initial jobless claims, which fell to the lowest level since 1969, was another encouraging data point. The latest housing data was disappointing, as the recent rise in interest rates appears to be stifling activity, with new and pending home sales both falling unexpectedly, as well as mortgage applications.
The S&P 500 closed the week up with 1.81%. One-Signal Xpert and Xpress returned 0.32% and 0.08% respectively.