Currently reading

Nasdaq posts best quarter since 2020

Market insights

2 min read

Nasdaq posts best quarter since 2020

It was a relatively light week for US data releases as well as lessening volatility in the banking sector, much to the relief of investors.

Research Team
Research Team

Stocks got a boost on Friday as the Federal Reserve’s preferred measure of inflation, the core personal consumption expenditures index, came in slightly lower than expected at 4.7%. The softening of the measure reinforced the view that the Fed will pause interest rate hikes.

For the week the S&P 500 was up 3.5%, with all eleven sectors logging gains. Despite the banking turmoil in March the index managed to post a 3.5% gain for the month and saw a 7% rise for the quarter. The tech heavy Nasdaq was also up around 3% for the week and surged 16.8% for the first quarter. This was its best performance since the second quarter of 2020, with tech stocks coming back into favour at the prospect of a rate peak. In contrast, small caps saw a more modest rise while the Dow Jones only managed to eke out a 0.4% gain for the first three months. The yield on the 10-year Treasury note ended slightly higher for the week at 3.48%. 

European indices posted strong weekly gains amid the easing banking concerns. The pan-European STOXX 600 was up 4% for the week and rose 6.7% for the quarter. A preliminary estimate for annual eurozone inflation slowed to 6.9% in March as energy costs receded. Nevertheless, inflation still remains above the European Central Bank’s target and they are likely to continue with another rate rise. Government bond yields picked up after the inflation data.

The Nikkei 225 added 2.4% for the week, buoyed by the improved investor sentiment. Tokyo core consumer price inflation slowed for a second consecutive month to 3.2% although this was slightly ahead of expectations and above the central bank’s target. Over in China, the Shanghai Composite saw a modest weekly gain of 0.2% while the Hang Seng was up 2.4%. A boost came from PMI data, with the official non-manufacturing PMI hitting its highest level in over a decade. There was also optimism on news that Alibaba was splitting up into six separate units, with hopes a more streamlined structure could lessen regulator scrutiny. Indeed later in the week JD.com also announced that it will seek separate listings for two of its units.

MSCI’s index of Latin American stocks was higher. Mexico’s IPC was 2.2% higher in a week where the central bank raised its target for the overnight interbank interest rate by 25 basis points to 11.25%, as expected. Meanwhile in Colombia, the central bank also hiked its benchmark rate by 25 basis points to 13%. Brazil’s Bovespa index was also higher, helped by a spike on Thursday as investors welcomed the new fiscal rules proposal, ending months of uncertainty. Under the proposal, spending growth would be capped at 70% of revenue growth as well as setting a floor for public investments.

The value of your investment can fall as well as rise in value, and the income derived from it may fluctuate. You might get back less than you invest. Currency exchange rate fluctuations can also have a positive and negative affect on your investments. Please note that EFG Harris Allday does not provide tax advice. Past performance is not a reliable indicator of future performance. 

This document has been produced by EFG Asset Management (UK) Limited for use by the EFG group and the worldwide subsidiaries and affiliates within the EFG group. EFG Asset Management (UK) Limited is authorised and regulated by the UK Financial Conduct Authority, registered no. 7389746. Registered address: EFG Asset Management (UK) Limited, Park House, 116 Park Street, London W1K 6AP, United Kingdom, telephone +44 (0)20 7491 9111.