Accompanied by shock waves from the demise of Silicon Valley Bank, Signature Bank and Credit Suisse, the first quarter was characterized by turbulent swings in inflation and rate hike expectations.
Despite the surrounding chaos, the market managed to rebound in March. Boosted by Information Technology, the S&P 500® posted a gain of 7.5% in Q1, outpacing smaller caps, with the S&P MidCap 400® up 4% and the S&P SmallCap 600® up 3%.
A flight to quality sentiment meant that Information Technology and Communication Services were the best-performing sectors for the quarter, up 22% and 21%, respectively. Financials was, unsurprisingly, the sectoral laggard. High Beta and Growth led among factors, while defensive strategies lagged.