The Market is a Zoo and March was a Lion!

April 11, 2016

By: Efram Slen, Global Index Product Development Manager, Nasdaq

March certainly roared like a lion this year following two difficult months at the start of 2016. Major U.S. indexes gained more than 6% each during the month of March:

Nasdaq-100 |+6.7%

S&P 500 |+6.6%

Dow Jones Industrial Average |+7.0%

During the month, Federal Reserve Chair, Janet Yellen, said the central bank will move cautiously as it weighs interest rate hikes in light of a weak global economy and stubbornly low inflation, raising questions about whether policymakers will make a rate move this spring.

Perhaps one of the more interesting stories of the month was the resilient comeback of Emerging Markets. Monetary easing by major central banks, as well as a firming of oil prices and other commodities during much of the quarter, powered emerging market stocks higher.

Nasdaq Emerging Markets Index | +12.7%

Figure A

 

Commodities also witnessed a surge:

Nasdaq Commodity Crude Oil ER Index |+8.2%

The Federal Reserve’s cautious stance on future tightening has dampened the U.S. Dollar, aiding a boost to broader commodities.

The Nasdaq Dividend and Income Family were also beneficiaries as yields on 10-Year U.S. Treasuries dropped sharply since mid-March, pushing investors to look elsewhere for yield.

 

Index BBG Ticker Name 1-Month Performance
DVG DVG NASDAQ US Dividend Achievers Select 6.0%
DAA DAAX NASDAQ US Broad Dividend Achievers 6.2%
DAY DAY NASDAQ US Dividend Achievers 50 7.9%
DAT DAT NASDAQ International Dividend Achievers 9.8%
NQMAUS NQMAUS NASDAQ US Multi-Asset Diversified Income 5.7%
NQ96DIVUS NQ96DVU NASDAQ Technology Dividend 9.4%

 

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Nasdaq has consolidated performance data for our top 50 most-watched indexes. View the full report here.

 

 

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