Feb 2023

Monthly Market Commentary

The rally in financial assets that began the year was unable to sustain its momentum in February. Generally strong economic data released during the month and above-consensus inflation figures contributed to a sharp repricing higher in market expectations for the terminal federal funds rate. U.S. Treasury yields rose across all tenors, with the two-year yield up 62 basis points (bps) and the 10-year yield up 41 bps. Corporate earnings also weighed on investor sentiment, as aggregate S&P 500 Index companies’ fourth quarter earnings are poised to decline for the first time since the third quarter of 2020, per FactSet (99% of S&P 500 companies having reported earnings as of March 3). For the month, stocks and bonds broadly fell as the S&P 500 dropped 2.45%, and the Bloomberg US Aggregate Bond Index declined 2.59%.

Read DoubleLine’s Outlook and Commentary on various sectors of the market.