April 2026
Summary
Global equity markets rebounded strongly in April on optimism related to various agreements, and potential agreements in the ongoing war in Iran. Bond markets were more wary, with interest rates higher on the margin as oil continued to climb, driving inflation concerns. Commodity prices drove macroeconomic momentum, for better or worse, and a strong start to earnings season proved to be a boon to U.S. stocks.
Equities
AI enthusiasm helped boost stocks to their highest monthly gain since 2020, with U.S. and emerging markets stocks booking double-digit returns, while developed non-U.S. equities gained 7.5% in April. Domestically, small caps outpaced large cap equities, though major blue chip indexes still closed the month at all-time highs on the back of strong performance from the technology sector. Emerging markets saw wide performance dispersion from country to country, with commodity producers and tech-exposed economies the largest beneficiaries.
Fixed Income
Bonds failed to match the enthusiasm of the equity market in April as global Central Banks remained entrenched in neutral or hawkish stances given the looming impact of higher oil prices on inflation. The U.S. 10-year Treasury ticked 6 basis points higher to 4.37% while the 30-year bond touched 5% before finishing the month at 4.97%. Against this backdrop total returns for investment grade bonds were flat, and long duration fixed income ended April in the red. High yield corporates caught a bit of the equity tailwind to gain 1.7%, moving back into positive territory year to date.
1 – Russell 1000, 2 – Russell 2000, 3 – MSCI EAFE, 4 – MSCI Emerging Markets, 5 – Bloomberg US Agg, 6 – Bloomberg US Long Gov/Credit
7 – Bloomberg US Corporate High Yield, 8 – Bloomberg Gold Subindex, 9 – Bloomberg Commodity
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