The markets entered the third quarter of the year breathing a collective sigh of relief, kicking it off with a robust rally, amid solid corporate earnings and hopes that inflation had perhaps peaked. But the second half of the quarter saw a harsh about face, as continued inflation, additional interest rate hikes and escalating geopolitical tension weighed heavily on the market.
Markets had their worst first half of the year since 1970, leaving investors’ nerves on edge.
Concerns over the economic implications of the war in Ukraine brought chaos to the stock market during Q1, with major indices hitting “correction” territory (traditionally a decline of at least 10% from recent highs).
It was another year for the history books as equities continued to rally in the fourth quarter, hitting new all-time highs.
After more than a year of rapid recovery, the U.S. economy saw slowing growth in the third quarter. However, we have optimism for the remainder of the year.
As the economy continued to reopen, the second quarter of 2021 experienced continued growth fueled by various factors.