The major stock market indices were up in March, but their performance for the first quarter was the worst since the onset of the COVID-19 pandemic. Investors’ concerns about surging inflation, the consequences of the Ukraine-Russia War, supply chain disruptions, and the Fed's decision to raise the interest rates later this year resulted in increased stock selling and significant price dips.
However, April is historically one of the best months of the year for the S&P 500. According to Sam Stovall, chief investment strategist at CFRA, the S&P 500 has been higher 70% of the time and has gained an average of 1.7% in all Aprils since World War II. The S&P was 3.6% up in March, and the momentum is expected to continue. Also, the robust employment rate, which is evidenced by the addition of 431,000 jobs in March, should also help the market regain its stability.
