The U.S. economy continues to show resiliency and disinflation progresses as the February CPI report showed that inflation is still gradually receding. The first quarter’s rally became a “everything rally” as global stocks and bonds posted positive gains with many indices hitting record highs. Here are 3 things you need to know:

1. This year’s first quarter gain for the S&P 500 is the 12^th strongest since the end of World War II and the index has hit 22 all-time closing highs this year.
2. Of the 10.56% total return for the S&P 500 over the quarter, 7.33% of it came from S&P 500 forward P/E multiple expansion.
3. Nvidia (NVDA) accounted for about one-fifth of the total gain for global stock markets in the first quarter.

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

Indices:

• 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).

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