Monthly Market Update (March 2023): 3 Things You Need to Know

by | Apr 5, 2023 | Wealth Management

Despite the banking-sector turmoil seen in March, the S&P 500 rose in March, helped by strong returns from growth stocks that were buoyed by falling bond yields. Here are 3 things you need to know:

  1. The Federal Reserve continued to hike interest rates by 25 bps in March bringing the Federal funds rate range to 4.75% to 5.00%. U.S. Fed Chair Jerome Powell admitted, the current bank stress will tighten credit, with the result being “the equivalent of a rate hike or perhaps more than that.”
  2. Technology led the advance, with the Nasdaq Composite ending up 6.69% in March and 16.77% in the quarter, its best showing since 2020’s second three months. 
  3. In the Financial sector of the S&P 500, 14 of the 65 stocks were up and 51 were down, with two regional issues going into receivership (SVB Financials and Signature Bank), as one regional declined 89% for the month (First Republic Bank). Banking issues, at this point in time, do not appear to be systemic, but withdrawals may lead to more failures.

Sources: J.P. Morgan Asset Management – Economic Update; Bureau of Economic Analysis (; Bureau of Labor Statistics (; Federal Open Market Committee (; Bloomberg; FactSet.


  • The Bloomberg Barclays Aggregate Bond Index is a broad-based index used as a proxy for the U.S. bond market. Total return quoted.
  • The S&P 500 is designed to be a leading indicator of U.S. equities and is commonly used as a proxy for the U.S. stock market. Price return quoted.
  • The MSCI ACWI ex-US Index captures large and mid-cap representation across 22 of 23 developed market countries (excluding the U.S.) and 27 emerging market countries.  The index covers approximately 85% of the global equity opportunity set outside the U.S. Price return quoted.
  • The MSCI Emerging Markets Index captures large and mid-cap segments in 26 emerging markets. Price return quoted (USD).

Disclosure: BFSG does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to BFSG’s website or blog or incorporated herein and takes no responsibility for any such content. All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly. Please remember that different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment or investment strategy (including those undertaken or recommended by Company), will be profitable or equal any historical performance level(s). Please see important disclosure information here.

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