February 2023

Coming off a challenging 2022, equity markets broadly rebounded in January with all major indexes up sharply as investor sentiment improved in the new year. Increasing confidence in the likelihood of a soft landing and the potential for the Fed to further slow the pace of interest rate hikes appear to have provided support for the January rebound. Reflecting this environment, the VIX Index or “fear gauge” declined from the 23 level at the start of January to end the month at under 20. For the full month, all three major equity indexes increased with the Dow Jones Industrial Average up 2.8%, the S&P 500® index up 6.2%, and the smaller-cap weighted Russell 2000® increasing a quite strong 9.7%.

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