First Quarter in Stocks: Energy Rules the Roost
But high oil and gas prices spell trouble for other areas of the market.
After an exuberant rise in 2004's fourth quarter, the U.S. stock market was stifled in 2005's first quarter by high energy costs, inflation fears, and higher interest rates. For the year to date through March 28, 2005, Morningstar's U.S. Market Index was down 2.79%.
Investors found little to cheer about during the period. Borrowing costs increased after the Federal Reserve, concerned about inflation, hiked interest rates twice during the period. The U.S. dollar also remained weak.
Laura Pavlenko Lutton does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.