The Investor Insight - April 2024

Wall Street got off to a fast start to kick off 2024. Investors were encouraged by strength in the economy, the likelihood of interest rate cuts (possibly beginning in June), and opportunities in artificial intelligence. Indexes reported solid first-quarter gains, led by the S&P 500 and the Nasdaq. Several indexes reached new highs throughout the quarter. The S&P 500 hit its first record high in two years late in January, leading to its best first quarter performance since 2019.

At the time of this writing (mid-April), stocks have faltered as investors dealt with market-moving inflation data and a less-than-impressive start to first-quarter corporate earnings season. The Consumer Price Index (CPI) and the Producer Price Index (PPI) rose higher in early April. Together with increases in both, indices support a more cautious approach relative to the Fed’s current monetary policy.