Weekly Market Review & Analysis For March 21, 2022

The stock market experienced some volatility over the past few days; however, both the S&P 500 index post +1.8% as well as Nasdaq with +2.0% have been able to show significant gains for the week, while the Dow Jones with +0.3% did not perform notably, ending the week barely above its flat level. The small-cap Russell 2000 index also lagged, dropping 0.4%. 

The S&P 500 index battled with its Mean Res 4470 but was able to finish the week with a higher level than the mark and hit a six-week high in the final trading session of the turmoil week.

Ten S&P 500 market sectors finished the week positively, with energy posting +7.4%, materials with +4.1%, and utilities with +3.5%: these were sectors ahead of the pack. Meanwhile, with -0.2%, health care saw a slight decline after outperforming earlier in the month.

The energy sector market was supported with crude oil that increased $10.80 or 10.5%, to finish the trading session at $113.83/bbl. The ongoing Russian special operation in Ukraine was a significant factor in the support for crude oil and other commodities, resulting in the strong performance in the material sector, where fertilizer and steelmakers producers were the leading players.

The trading week concluded with reports of another crude oil release from the strategic reserve holdings as Chevron reportedly had been granted permission to restart operation activities in Venezuela. Similarly, a Russian energy official has allegedly stated that countries with friendly relations like China and Turkey can pay for gas and oil in domestic currency, rubles, and bitcoin. However, unfriendly countries will have the option of paying in rubles or gold.

The top-weighting technology sector with +2.3% completed the week's trading session way ahead of the broader market overall. However, it was under pressure on Friday when U.S. Treasuries increased this week's losses, dropping to new levels for this year following Citigroup saying that the Fed will raise rates by 50 basis points during each of the four upcoming policy sessions. The Two-year and Ten-year yield notes rose by 34 basis points for the week, reaching 2.29% and 2.49%, respectively.

European equity market(s) were mainly up, and the market continued to pay attention to the ongoing conflict in Ukraine and its economic effects. The majority of significant sectors experienced improvements, while industrials were in the spotlight.

Stocks in Asia ended mixed due to the whirlwind of headwinds triggered by the Russian special operation in Ukraine currently raging within Eastern Europe and increasing energy and other commodities prices.