Stocks slipped on Wednesday to snap a four-day winning streak for the S&P 500, but the loss of less than 1% will do little to ruin the mood of investors after the past two weeks.
The broad-market index has gained about 10% since March 14, appearing to shake off concerns about the Fed's hiking cycle and the ongoing war in Ukraine. The sharp move has brought the S&P 500 to about 5% from its record high.
The rally has taken much of the sting out of a rough start to 2022 for equities, and it gives the market some momentum heading into April — typically a strong month for stocks. According to LPL Financial, the S&P 500 has advanced in 15 of the past 16 Aprils, with an average gain of 3.1%.
However, it is possible that the lack of new catalysts in recent weeks allowed the typical April rally to creep forward.
"March has been a tale of two halves, with the first part of the month seeing large selling pressure, only to reverse into one of the largest two-week rallies in recent memory," Jonathan Krinsky, technical strategist at BTIG, said in a note to clients Wednesday.
"As we have highlighted before, mid-March often tends to be a fulcrum, and while we are nearing April, historically a strong month for equities, our sense is the recent … rally has borrowed from some of those gains," he said.
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