3/28/22 Wealth Management Insight
Bond Price Rout- The sharp year-to-date decline in bond prices accelerated, sending the yield of the 10-year U.S. Treasury bond up to levels not seen since May 2019. After finishing the previous week at 2.15%, the 10-year yield jumped to 2.49% on Friday. At the end of 2021, the yield was just 1.51%.
Gloomier Outlook – Many companies are scaling back their expectations heading into earnings season, which begins in mid-April. As of Friday, more than twice as many companies had reduced their earnings guidance than had raised their forecasts, according to FactSet. Of the 95 companies in the S&P 500 that have changed their guidance, 66 cut expectations versus 29 that lifted them.
Russian Market Reopens – A Russian stock index fell on Friday, the day after recording gains on Thursday as the market partially reopened following a February 28 shutdown in the wake of Russia’s invasion of Ukraine. Russia has been slowly reopening equity trading after other countries imposed economic sanctions in response to the invasion.
Top News to Watch this Week
Jobs Ahead – A monthly U.S. labor market update due out on Friday will show whether the strong growth recorded in February carried over into March. In February, the economy generated the strongest job growth in seven months, with 678,000 jobs added; the unemployment rate fell to 3.8%.