Stocks, bonds, and U.S. commodities experienced significant gains in the first quarter of 2023 despite market volatility. Investor sentiment was rocked numerous times amid the Federal Reserve’s continued interest rate hikes in the face of persistent inflation and the ongoing banking sector crisis.
The S&P 500 gained 7% in the first quarter during which it enjoyed its best January performance since 2019. The Nasdaq Composite index surged 16.8%, enjoying its best start to the year since 2021, while the Dow Jones Industrial Average managed a meager gain of 0.4%.
Bonds were also strengthened during Q1, with the 10-year U.S. Treasury ending the quarter at 3.54% after beginning the year at 3.88%. The Bloomberg U.S. Aggregate Bond Index gained 2.5% for the quarter.
Commodities were also on the rise, with the price of spot gold increasing 8.5% to $1,977.96 per troy ounce; its highest level since March 2022 and an almost all-time high. West Texas Intermediate (WTI) crude contracts declined by 3.6% to $75.56 per barrel.