At the end of March, Federal Reserve Chairman Ben Bernanke said that the Fed's low interest rate policy is likely to remain in place a while longer to combat lingering problems in the labor market. The jobs market has been strengthening in recent months, but the unemployment rate is still high and may not fall much lower without stronger, sustainable economic growth.

Large-, mid-, and small-cap stocks enjoyed a robust quarter with returns in excess of 12%, and growth stocks outperformed value stocks across all market capitalizations. In the large-cap universe, as measured by the S&P 500, all sectors, save utilities, advanced, led by financials and information technology with returns higher than 20%.

Stocks moved higher as good earnings reports prevailed over investors' persistent worries about the European debt crisis, as well as some data suggesting a slowdown in the U.S. economic recovery. Markets started the week on a down note in reaction to a steep drop in European stocks...

The S&P 500 Index turned in its best quarterly performance since the third quarter of 2009 as the eurozone backed away from the point of collapse, the U.S. economy showed continued signs of life, and central banks pledged to step in and support global economic growth. Investors diverted assets from relatively safe but low-yielding bonds into riskier investments following last year's turmoil. Strong corporate earnings reports also bolstered U.S. equity returns.

At the end of March, Federal Reserve Chairman Ben Bernanke said that the Fed's low interest rate policy is likely to remain in place a while longer to combat lingering problems in the labor market. The jobs market has been strengthening in recent months, but the unemployment rate is still high, and it may not fall much lower without stronger, sustainable economic growth.

Despite stumbling near the end of the month, major U.S. stock indexes rose in March, adding to the gains of the first two months of 2012. The S&P 500 Index reached the 1,400 mark for the first time since May 2008, and the Dow Jones Industrial Average climbed to its best level since the beginning of the financial crisis.