April 2026 Overall Themes
1. Continued U.S. Resilience
The U.S. economy remained strong through the month of April. All three major indexes reported gains, consumer spending remained resilient, and GDP estimates showed healthy growth of about 2% in the first quarter of the year.
2. Inflation
Inflation, as measured by personal consumption expenditures (PCE), rose between February and March from 2.8% to 3.5%. This prompted the Federal Reserve to keep interest rates steady at 3.5%–3.75% in April.
3. Oil Prices
Americans are continuing to see higher prices at the pump amid disruptions linked to the Iran conflict. The national average has risen to about $4.45 per gallon. Gas prices typically move up quickly, like an elevator and fall more slowly, like an escalator. As a result, it may take time before prices return to more normal levels.
Equity Markets
- S&P 500: Overall, large U.S. companies posted strong gains in April (~+9.6%). This rebound erased earlier losses from March, bringing the index back into positive territory for the year (~+5.0%).
- Dow Jones: Dividend paying companies also posted strong gains in April with the Dow rising (~+7.1%). This helped push the index back into the positive for the year at (~+1.1%).
- NASDAQ: Among the three major indexes, tech companies saw the strongest growth in April (~+15.3). The NASDAQ leads the group in year to date returns at (~+7.9%).
- International: Overseas, companies experienced slower growth due to the Iran conflict. Europe and Asia are particularly exposed to the disruption since they are more reliant on imported energy. As a result, elevated uncertainty and higher energy costs have weighed on economic activity and dampened growth abroad.
Fixed Income
- Overall, the Bloomberg U.S. Aggregate Bond Index delivered a positive total return in April (~+0.7%).
- Bonds continue to play an important role in investors’ portfolios, providing stability during periods of market volatility.
- Fixed income rates are expected to remain higher for longer as the Federal Reserve continues its efforts to combat inflation.
What This Means for Investors
- Stay invested and remain focused on long-term goals and not short-term fluctuations. As the saying goes, those who get hurt on the roller coaster are the ones who get off in the middle of the ride.
- It is important to spread the risk you are taking with your investments. Technology companies have performed well over the past few years, but it remains important to maintain exposure to other areas of the market within your portfolio as well.
- Overall, the U.S. economy and markets remain strong, even though volatility may continue in the coming month. If you would like help navigating these market swings, consider scheduling a time to speak with one of our advisors.