Financial Indicators : Weekly Extract April 3

Many financial indicators are giving investors more confidence. Friday's gains on Wall Street topped 1%, and the Nasdaq after opening the week in the negative, ended back in the positive and posted its largest quarterly percentage gain since June 2020.

The technology sector's 21.5% surge in the first quarter helped the S&P 500 close at its highest point since February 15 and post gains for the second consecutive quarter.

Much of this is due to financial indicators of slowing inflation, which raised expectations that the Federal Reserve would soon halt its escalating interest rate increases.

Inflation

To reduce inflation, the Fed has been raising interest rates. At its May meeting, expectations for a 25 basis point rate hike declined to approximately 50%, the other 50% representing the probability of no increase.

According to a Commerce Department report released Friday, consumer spending rose slightly in the United States in February despite falling inflation.