- Given a month to process the first Fed rate hike, the war in Ukraine, and now a surprise contraction of Real GDP in Q1, U.S. equities plummeted. The S&P 500 fell nearly 9% while the Nasdaq 100 had its worst month since 2008.
- The Biden Administration approved the release of emergency oil from the Strategic Petroleum Reserve, temporarily stabilizing oil prices in the U.S.
- Personal Consumption Expenditures (“PCE”), the Federal Reserve’s preferred inflation measure, rose by 6.4% YoY, the fastest pace of inflation since 1982. If food and fuel prices are stripped out, Core PCE climbed by 5.2% in the year.
- Value equities held up better than Growth equities through this month and year.
- Fixed income returns continued to tumble in April as the market adjusted to expected rate hikes and balance sheet reduction and as the Fed battles persistent inflation.
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