Major U.S. stock indices experienced a relatively light week leading into Easter weekend, sufficient to mark the fifth consecutive month of gains.
The S&P 500 index has rallied by 28% since the lows of October 2023, the Nasdaq 100 by 30%, and the Dow Jones by 23%. Yet March witnessed a notable narrative shift, with small caps outperforming large caps and energy outpacing other sectors.
U.S. economic growth surpassed previous estimates during the fourth quarter of 2023, while Federal Reserve members, such as Christopher Waller, are voicing their opposition to a rush to cut interest rates.
Among mega-cap stocks, FedEx was the week’s top performer, up by 9%, while Nike was the main laggard, down nearly 7%. Gold prices set a new all-time high, topping $2,220 an ounce.
Baltimore bridge costs
Following a cargo ship collision causing Baltimore’s Francis Scott Key Bridge to collapse, significant costs are anticipated. President Joe Biden pledged federal funds for reconstruction, while insurance, including Britannia P&I Club, may cover damages. Estimates for the Baltimore bridge damage suggest insurance payouts could be similar to the $1.5 billion figure from the 2012 Costa Concordia incident.
More:No rate cuts in March but Fed chair hints they’re coming
Retirement crisis warning
BlackRock CEO Larry Fink sounded the alarm on an impending U.S. retirement crisis, criticizing the self-reliant retirement savings approach and the possible shortfall of Social Security by 2034. He’s urging reform and highlighting the need for accessible retirement investing, drawing inspiration from the Netherlands’ policies.
A rebound for small-cap stocks?
Analysts highlighted a potential rebound for small-cap stocks if the Federal Reserve cuts interest rates. Small caps, usually up-and-coming companies with a market capitalization of less than $2 billion, are now undervalued compared with large caps, which have a market capitalization of $10 billion or more. A soft landing for the U.S. economy could further drive small-cap recovery, making the Russell 2000 an attractive investment option.
Cocoa prices explode
Cocoa prices skyrocketed to $10,000 per ton, up by 240% from a year ago, matching the gains of Nvidia stock, an artificial intelligence favorite. Challenges in cocoa-producing regions, including climate change and diseases, have contributed to this surge, threatening to make chocolate a luxury item and significantly affecting Easter costs.
Benzinga is a financial news and data company headquartered in Detroit.