U.S. stocks sold off this week as the repricing in growth-related shares continued ahead of key earnings data. Markets remain vigilant as COVID-19 restrictions continue to weigh on China alongside looming central bank rate hikes. On the earnings front, shares of Microsoft rallied following impressive top-and bottom-line earnings amid ongoing strength in both cloud services and software. Elsewhere, shares of Google’s parent company, Alphabet, traded lower after reporting its slowest revenue growth since late 2020. On the data front, an early reading on March wholesale inventories reflected a larger-than-forecasted 2.3% gain. Separately, pending home sales declined 1.2% during the period for a fifth consecutive monthly drop. New home sales declined by 8.6% in March, while other measures of home prices saw record monthly gains. The Conference Board’s measure of consumer confidence unexpectedly eased in April, weighing on risk appetite. Looking ahead, focus this week will be on the initial reading for first-quarter GDP due out on Thursday, with an expectation of 1.1% growth for the quarter. In bonds, the yield on the 10-year Treasury note traded lower this week by about (0.10%) to 2.79% mid-week. Meanwhile, the yield on the 2-year Treasury note slid as well following impressive demand in the $48 billion auction this week.

Source: GSAM, Daily Upside, JPM, FactSet

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