.jpg?height=100&name=Dave_Lundgren%20(50x54%2072dpi).jpg)
Each month, senior leaders of Hancock Whitney's Asset Management team discuss the latest news and events that impact markets and the economy.
This month:
First quarter GDP disappointed versus expectations, and chances of recession for second half of the year have ticked up.
Watch and listen to the webinar:
Key Takeaways:
- The Federal Reserve’s hike of 25 basis points at the May 2-3 meeting likely leads to the Fed pausing. Inflation data trends, while mostly favorable, remain stubbornly above the Fed’s inflation target. The market anticipates the Fed will begin cutting rates this year in the face of a weakening economy and banking stress, but Fed Chairman Jay Powell continues to strongly suggest that a cut in the near term is unlikely. A strong labor market continues, which reduces the likelihood of a cut in the near term.
- Earnings reports for the 1st quarter, while declining, have come in stronger than expectations. Markets have reacted positively as many equity indices produced modestly positive results for April. However, the headline S&P 500 number doesn’t tell the whole story as the market remains bifurcated with the average stock not keeping pace with capitalization weighted market indices. We still remain cautious on the outlook for stocks given the slowing economy, stubborn inflation, and many geopolitical issues for markets to navigate.
- Fixed income yields changed very little in April providing modest returns for the month. Bond yields seem to have settled into a comfortable trading range as clarity on Fed policy going forward remains uncertain.
- While banking related issues once again are making headlines, deposit flows and banking liquidity have mostly stabilized.
- The debt ceiling deadline approaches and the threat of a government shutdown or even a government default looms. Both sides appear to have reached a point to begin negotiating and we remain fairly positive a resolution will be reached in the upcoming weeks.
- Tension remains high between the U.S. and China. The developed world has spent decades building trading relationships with China. Now, numerous areas of conflict have arisen threatening global economic growth as these relationships continue to deteriorate.
The Hancock Whitney Asset Management team is ready to help guide your portfolio through market uncertainty to help you achieve your investment goals.
The information, views, opinions, and positions expressed by the author(s), presenter(s), and/or presented in the article are those of the author or individual who made the statement and do not necessarily reflect the policies, views, opinions, and positions of Hancock Whitney Bank. Hancock Whitney makes no representations as to the accuracy, completeness, timeliness, suitability, or validity of any information presented.
This information is general in nature and is provided for educational purposes only. Information provided and statements made should not be relied on or interpreted as accounting, financial planning, investment, legal, or tax advice. Hancock Whitney Bank encourages you to consult a professional for advice applicable to your specific situation.
Hancock Whitney Bank offers investment products, which may include asset management accounts, as part of its Wealth Management Services. Hancock Whitney Bank is a wholly owned subsidiary of Hancock Whitney Corporation.
Investment and Insurance Products:
| NO BANK GUARANTEE | NOT A DEPOSIT | MAY LOSE VALUE | NOT FDIC INSURED |
| NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY | |||
Equal Housing Lender. All loans and accounts subject to credit approval. Terms and conditions apply.