Week ending March 16: Markets continue volatile pattern.
Markets continued to exhibit the volatile pattern of recent weeks. The Morningstar US Market Index fell 1.05% for the week ending March 16, losing most of its gain from the previous week. Subprime mortgage lending remains the main source of concern, as that sector's woes threaten to spill over into other areas. The consumer price indexes, a key measure of inflation, rose at a faster pace than expected, dimming hopes of a Federal Reserve interest rate cut in the near future.
All nine Morningstar style indexes finished in negative territory. The Morningstar Large Value Index was the worst performer with a loss of 1.32%. The Morningstar Small Growth Index was the best performer with a loss of 0.51%.
The fallout from subprime lending affected large-value stalwarts J.P. Morgan Chase & Co.