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5 Tech Stocks That Crushed the Market in March 2016

The year 2016 started off with some of the most volatile trading in recent times. Slowdown in the Chinese economy coupled with sliding oil prices set off alarm bells every now and then at all the major domestic indexes, fueling concerns of a global economic slowdown.

“March” to the Rescue

However, things started improving in March (specifically latter half of February) with crude prices recovering from their 12-year lows and the Fed adopting a different stance on rate hikes giving a fresh lease of life to indices.

Oil prices have recovered from below $30 and are now perched slightly under $40. Russia and other members of OPEC are gearing up for a meet this month to consider a supply freeze, which has boosted investor sentiment. Also, Iran is showing interest in attending the meeting after being reluctant earlier on. Weaker-than-expected rise in crude inventories and a weaker dollar are causing oil prices to stabilize. Brent crude rose 10% and WTI crude increased 14% in March.

Further, Fed Chairperson Janet Yellen addressed the markets and said the Fed wasn’t going to hike interest rates four times as projected last December. Instead it will hike rates twice this year as “global and financial developments continue to pose risks." For the time being, interest rates continue to stay between 0.25% and 0.50%.

Also, with improved third GDP estimate for fourth quarter of 2015 (1.4% against 1% projected earlier) and 4.9% unemployment rate for February, the U.S economy seems on a road to recovery. All these factors contributed to higher demand for riskier assets causing surges in the stock market amid bouts of occasional volatility. We remain positive ahead of the jobs report today.

In March, the S&P 500, Dow Jones Industrial Average (DJIA) and NASDAQ Composite index grew 6.6%, 7.1% and 6.8%, respectively. For the first quarter, the S&P 500 and Dow Jones Industrial Average (DJIA) were up 0.8% and 1.5% whereas NASDAQ Composite ended the quarter in red, down 2.8%.

Tech Sector Performance

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