Stock Market Commentary -

Volatility returned to markets with a vengeance in the first quarter of 2018. After surging nearly 6% in January, the strongest start to the year since 1997, the S&P 500 plummeted by 10% from its high by February 8, triggered by worries of rising inflation and interest rate hikes. The market partially recovered mid-quarter as reports of steady global economic growth and healthy corporate earnings temporarily eased investor concerns. In March, markets were pressured further as threats of global trade wars and Technology sector regulations loomed. Including dividends, the S&P 500 ended the quarter with a 0.8% loss.

Despite a steep correction in March by some of the largest technology stocks impacted by Facebook's announcement of its release of customer data, the sector still led for the quarter, gaining 3.5%. The Consumer Discretionary sector followed with a 3.1% gain. All other sectors lost ground during the quarter with Telecom and Staples hit hardest, falling over 7%. Small cap stocks, relatively shielded from trade war threats, outperformed large cap stocks by 4% in March and the Russell 2000 finished the quarter down just 0.1%.