The stock market had a great start to 2024, with the S&P 500 Index ($SPX) ending the first quarter with 10.2% gains - its most impressive Q1 performance in five years. However, the SPX is down more than 4% to start April. A stronger-than-expected jobs report paired with stickier inflation in March triggered a sell-off, leaving many wondering when the Federal Reserve might start scaling back interest rates.
In fact, the Fed's March meeting minutes revealed they're waiting for more signs of inflation easing before considering rate cuts, and both Fed Chair Powell and Vice Chair Philip Jefferson have since downplayed prior forecasts for three cuts this year. Given the “higher for longer” rate scenario, the 10-year Treasury yield (TOJ24) surged to 4.61%, its highest since November 2023.
