By Park-Elm|2026-04-02T16:19:03+00:00April 2nd, 2026|Markets|
- U.S. equities navigated a turbulent first quarter, buffeted by a trifecta of tariff-related anxiety, renewed AI concerns, and private credit worries. Jitters escalated in March as the conflict in the Middle East reignited stagflation fears, and hopes for Fed rate cuts dissipated. Optimism returned to the market on the final trading day of the quarter, accompanied by a strong relief rally. Still, the S&P 500® closed the quarter down 4%, the worst quarterly performance since Q3 of 2022.
- Despite the ongoing rotation toward smaller stocks, mid- and small-caps were not spared during March’s selloff, though both finished the quarter in positive territory. The S&P MidCap 400® and S&P SmallCap 600® gained by 3% and 4%, respectively.
- Sector performances varied during the quarter. Driven by soaring oil prices, Energy led in Q1, up 38%, and was the only sector to post a gain in March. By contrast, Big Tech sectors Information Technology, Communication Services, and Consumer Discretionary all posted heavy losses, with Financials as the laggard.dashboard-us-2026-03
