Monthly Market Update - April 2026

Global markets experienced both resilience and volatility in March, as inflation showed signs of easing amid continued uncertainty around interest rates and economic growth. U.S. equities finished higher overall, with the S&P 500 extending an upward trend, supported by optimism surrounding artificial intelligence. The NASDAQ Composite led gains, while the Dow Jones Industrial Average lagged due to pressure in the industrial and energy sectors. Recent data indicates inflation continues to moderate, and consumer spending has remained more resilient than expected.

As we move into April, investors will closely monitor upcoming inflation reports. While the broader market outlook remains constructive, ongoing volatility is likely as expectations continue to adjust. If you have any questions, please contact our office. We are here to support you and your financial goals!

Stocks

March was marked by heightened volatility, with markets moving lower as investors assessed the potential duration and impact of the conflict in Iran. The selloff was led by the Dow Jones (-5.20%), followed by declines in the S&P 500 (-4.98%) and NASDAQ (-4.81%). Small caps were particularly pressured as expectations for multiple interest rate cuts this year have faded, removing a key tailwind for the asset class. International equities, both developed and emerging markets, also declined, reflecting their greater sensitivity to oil prices and reliance on trade through the Strait of Hormuz. However, despite underperforming in March, both small caps and international equities continue to lead the major U.S. indices on a year-to-date basis. Looking ahead, market volatility is likely to persist as long as geopolitical uncertainty remains elevated.

Sector Performance

Ten of the eleven sectors in the S&P 500 declined in March, with energy as the lone positive performer, benefiting from higher oil prices amid the Iran conflict. Utilities were the next best performer, though still negative, an unusual outcome for a defensive sector that likely reflects sensitivity to shifting rate-cut expectations. The steepest declines were seen in communication services, health care, and industrials. Communication services and industrials weakened in the broader risk-off environment, with industrials also pressured by commodity volatility tied to the conflict. Healthcare lagged due to stock valuation pullbacks and reduced expectations for M&A activity as rate outlooks shifted. Despite the challenging month, six of the eleven sectors remain positive year-to-date.

Bonds

Fixed income markets faced a challenging and highly volatile environment in March, offering less diversification as rising yields pressured bond prices. Treasury yields moved higher across the curve as investors recalibrated expectations for Federal Reserve policy amid persistent inflation concerns. The primary driver was a surge in oil prices tied to the ongoing conflict in Iran, which raised fears of renewed inflationary pressure and delayed the anticipated path of rate cuts. Long-duration and corporate bonds were the weakest performers, declining -2.33% and -1.98%, respectively. The difficult month pushed all fixed income indices into negative territory year-to-date.

Economic Update

Most of the recent economic data in March predates the start of the Iran war but still provides a useful snapshot of underlying economic momentum. Activity across both the manufacturing and services sectors showed improvement, with services in particular remaining a key driver of growth. Consumer spending also appears broadly stable, as core retail sales data suggests underlying demand remains intact despite lower readings from year-end. Labor market data was somewhat mixed, with weaker payroll growth, but claims data suggests the labor market is cooling gradually rather than deteriorating sharply. While headline GDP was revised lower, underlying core GDP continued to expand at a moderate pace close to 2%. At the same time, inflation trends remain above the Federal Reserve’s target, reinforcing a cautious policy backdrop moving forward.

4 ways that future urban living will be greener across the globe 

Cities around the world are adopting innovative technologies and sustainable infrastructure to reduce emissions and create greener, more efficient urban environments. 

1. Heat Recycling: Making large-scale sustainable infrastructure changes in central London is highly complex due to its extensive underground networks. A redevelopment project in west London is addressing this challenge by capturing waste heat from a nearby data center and transport tunnels.
2. Algae walls: Algae-based building surfaces can absorb CO2 while providing shading, heat, and renewable energy as demonstrated by projects in Hamburg. Similar innovations are being explored in Singapore, from highway air-filtering panels to bioluminescent algae for natural lighting.
3. Solar sidewalks: Groningen in the Netherlands has a 1300 feet solar sidewalk powering its town hall as part of the EU’s Making City program.
4. High-tech, low-carbon cities: In a future smart city, fully self-sustaining buildings generate energy, recycle water, and automatically adjust lighting, climate, and ventilation in real time using embedded IoT (Internet of Things) sensors that respond to people and weather. 

To learn more about these five advancements, along with other fascinating innovations, read the full article here. 

THOUGHT FOR THE MONTH

^{Index Definitions}

^{Dow Jones Industrial Average:The Dow Jones Industrial Average® (The Dow®), is a price-weighted measure of 30 U.S. blue-chip companies. The index covers all industries except transportation and utilities.}

^{Dow Jones U.S. Real Estate Total Return Index:The index is designed to track the performance of real estate investment trusts (REIT) and other companies that invest directly or indirectly in real estate through development, management, or ownership, including property agencies.}

^{NASDAQ Composite:The NASDAQ Composite is a market-cap weighted index of all issues listed on the Nasdaq stock exchange. It is heavily weighted towards the technology sector.} 

^{S&P 500 Bond Index:The S&P 500® Bond Index is designed to be a corporate-bond counterpart to the S&P 500, which is widely regarded as the best single gauge of large-cap U.S. equities. Market value-weighted, the index seeks to measure the performance of U.S. corporate debt issued by constituents in the iconic S&P 500.}

^{S&P 500 Consumer Discretionary:The S&P 500® Consumer Discretionary comprises those companies included in the S&P 500 that are classified as members of the GICS® consumer discretionary sector.}

^{S&P 500 Consumer Staples:The S&P 500® Consumer Staples comprises those companies included in the S&P 500 that are classified as members of the GICS® consumer staples sector.}

^{S&P 500 Energy:The S&P 500® Energy comprises those companies included in the S&P 500 that are classified as members of the GICS® energy sector.}

^{S&P 500 Financials:The S&P 500® Financials comprises those companies included in the S&P 500 that are classified as members of the GICS® financials sector.}

^{S&P 500 Index:The S&P 500® index is a market-cap weighted index of the largest 500 companies headquartered in the United States. The index covers approximately 80% of available market capitalization.}

^{S&P 500 Utilities:The S&P 500® Utilities comprises those companies included in the S&P 500 that are classified as members of the GICS® utilities sector.}

^{S&P U.S. Aggregate Bond Index:The S&P U.S. Aggregate Bond Index is designed to measure the performance of publicly issued U.S. dollar denominated investment-grade debt. The index is part of the S&P AggregateTM Bond Index family and includes U.S. treasuries, quasi-governments, corporates, taxable municipal bonds, foreign agency, supranational, federal agency, and non-U.S. debentures, covered bonds, and residential mortgage pass-throughs.}

^{S&P U.S. Treasury Bond Index:The S&P U.S. Treasury Bond Index is a broad, comprehensive, market-value weighted index that seeks to measure the performance of the U.S. Treasury Bond market.}

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