April Market Update – Q2 Blooms Despite Stormy Headlines

Eduardo Silva, CFP, CFA | Chief Investment Officer |
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Market Update
April became a clear reminder that sentiment and headlines don’t always dictate outcomes. Our Chief Investment Office, Eduardo Silva, shares his reflections on April and what investors might expect in May and the months to come:
 

Throughout the month of April, investors faced many unsettling headlines. From heightened geopolitical tensions to ongoing questions about inflation, interest rates, and global growth, the list of unknowns feels long. Given this level of uncertainty, it would be reasonable to expect markets to struggle. Instead, April served as a reminder that markets often behave differently in practice than they do in theory.   

The S&P 500 advanced by 10.4% in April, marking its best month since November 2020, after what was an uncomfortable start to 2026. On the final day of Q1, markets were down by more than 7%, investor sentiment was at its lowest, and markets still rallied. March 31st  kicked off one of the strongest market runs in history.   

March Showers April Flowers 

 

The second quarter of 2026 began with a run of seven consecutive positive closes on the S&P 500, effectively regaining the losses from Q1, and setting up momentum that would carry through April. During the 21 trading days in April, the S&P was positive 15 times (71.4% of the time) and never fell by more than 0.5% in a single day. The technology sector was the greatest beneficiary of this historic run, advancing more than 20% by itself, while the energy sector pulled back by nearly 3%.  

Within the same time frame, Nonfarm payrolls grew by an unexpected margin, adding 178,000 jobs, while the unemployment rate dropped by 0.1% to 4.3%. These numbers highlight strength in the domestic economy and help balance some of the geopolitical unease. Inflation has also shown signs of picking up. The US inflation rate increased by 0.90% month-over-month to 3.3%, its largest monthly jump since April 2021. Core inflation experienced a more modest increase of 0.10% to 2.60%. These figures remind investors that price pressures have not completely faded out of view, and the path to price stability may be uneven. 

 US Unemployment Rate

Ultimately, April’s positive performance doesn’t eclipse present market risks, but it reminds us that even amid policy uncertainties and geopolitical tensions, markets demonstrate resilience and reward patience over prediction. Short-term volatility can test confidence, but April reinforced the value of discipline, diversification, and a long-term perspective. Looking forward, we remain committed to helping our clients navigate these bouts of uncertainty with thoughtful guidance grounded in expertise.