Investors Remain Optimistic Despite Global Inflation Concerns

April 2023 saw the global equity market continue its upward trend.

April 2023 saw the global equity market continue its upward trend, driven by strong gains in the technology and emerging market sectors. Despite concerns around inflation investors remained optimistic, leading to a surge in equity prices.

The stock market saw mixed results as attention turned towards the busiest week of quarterly earnings reports for the season. Traders observed that the S&P 500's strong gains, the largest since January 6, were driven by just four stocks - Microsoft, Apple, Amazon.com, and Facebook parent Meta Platforms, which surged 14 per cent after an earnings beat. Conversely, cyclical sectors struggled as investors weighed signs of an economic slowdown, particularly in the manufacturing sector, after several measures of regional manufacturing activity came in below expectations. Additionally, concerns were raised over a negative outlook for shipping volumes from United Parcel Service, which led to a 10 per cent drop in its stock price.