- Stocks in the United States fell into the close, completing their first losing quarter since the pandemic bear market, while treasuries recovered from their worst losses in at least five decades.
- On the final day of a quarter that brought the twin threats of hawkish central banks bent on tamping down runaway inflation and the war in Ukraine, most financial markets were quiet. The S&P 500 fell, bringing its three-month loss to 4.9 percent, the highest since March 2020. The two-year treasury yield increased after a 150 basis-point increase, the largest since 1984. Ten-year rates fell, narrowing the spread to shorter tenors, as investors remain concerned that a restrictive Fed will cause a recession. and oil fell, but remained just above $100 per barrel in New York.
- Stocks, sovereign bonds, and corporate credit all took a beating in the first few months of the year, as investors worried about a slowing economy as central banks acted to combat inflation by withdrawing stimulus. Commodity investors fared best, riding massive gains in everything from oil to nickel and wheat. Nonetheless, the increases have exacerbated price concerns and may prompt a more aggressive response from central banks.
- Oil fell after US President Joe Biden ordered a massive release of US oil reserves while also encouraging drillers to increase output. Meanwhile, stocks fell as inflation-adjusted spending in the United States fell last month as prices tempered demand.
