Monthly Market Commentary

These monthly market commentaries share a synopsis of the U.S. financial markets with intelligent insights.

Latest Commentary:

April 2026 Market Recap

As the month neared the end, the team was questioning what does it take to “break” the U.S. equity markets. Starting with a global pandemic in 2020, the ensuing springs have included a short-lived Asian and European banking scare due to an overleveraged hedge fund (2021), the twin-billing of the Russian invasion of Ukraine and spiking inflation (2022), another banking scare in the U.S. (2023), more inflation and a Middle East flare-up (2024), and Liberation Day’s re-ordering of U.S. trade policy (2025). Not to be outdone, this spring has the Iran Conflict that dramatically impacted the global energy supply and roiled investment markets around the globe. With the exception of 2022, the sharp decline in equity markets was followed by larger rallies that lifted U.S. equity markets to high double digit or better returns by each year end. 2022 was the lone negative year as the inflation shock persisted into 2023. Overseas markets have fared favorably as well, including 2025 when MSCI EAFE beat the S&P 500 by 13.6%. Why has the U.S. equity market been able to rally after each of these setbacks?

Among the many reasons put forth, two are easy to identify and explain. First, the U.S. economy is broadly diversified with strengths in every sector. This means that when one or more sectors is facing challenges investors can rotate to other sectors that are more insulated from the stress or may be benefiting from the conditions that are hurting the struggling sectors. The U.S. economy is also powered by strong and diverse consumption engines. Through all of the turmoil since Covid, the U.S. consumer has proven its ability to spend and consume goods and services at increasing rates. At the same time, business investment and government spending continues to grow. These combined engines for growth have driven U.S. stocks to power through any temporary setbacks. The second reason for U.S. equity market resilience is the global dominance in innovation, particularly in tech related industries. As seen by the rally in most of the Mag 7 stocks in April, investors have returned to what has worked coming out of the spring setbacks. All but Tesla generated positive performance in April and, in most cases, the big boys more than recovered their negative results in March. The level of innovation across the U.S. economy is unparalleled and investors are willing to ride with these names until something stronger comes along to break the U.S. equity market.

U.S. equity markets were up 8-12%, with small cap stocks up over 12% while the S&P 500 posted a 10.5% monthly return. The Communication Services and Technology sectors powered the rally as investors saw opportunities to buy on dips across many of the big cap stocks that were hit in March. Non-U.S. stocks also rallied, with MSCI EAFE up 7.5% and MSCI Emerging Markets leading all major indices with a 14.7% return. The stabilization and small decline in energy prices caused by a modest de-escalation in the Iran Conflict were enough to spark a rally in many countries, particularly in emerging markets. U.S. Bond markets were slightly positive as interest rates fell slightly during the month. The Bloomberg Agg was up 0.1% and high-yield bonds rose 1.7%.

Here are observations on what occurred across the investment markets in April:

Broad Market Performance¹

Data as of April 30, 2026

Domestic Equity²

• U.S. equity markets rebounded sharply in April across all market caps and styles. The S&P 500 gained +10.5% and the NASDAQ 100 surged nearly +16%, driven by strong Q1 earnings results.
• Growth stocks reversed their Q1 underperformance, outperforming value across large and mid-caps as Technology and Communication Services led the rally. Small caps were the standout with the Russell 2000 up +12.2% for the month. 

International and Global Equities³

• International developed markets participated in the April rally, though to a lesser degree than U.S. equities. The MSCI EAFE gained +7.5% while currency tailwinds from a weakening U.S. dollar provided further support to non-U.S. dollar returns. 
• Emerging market stocks surged +14.7% in April, led by Asia ex-China. China lagged at +3.6%. Renewed risk appetite from the tariff pause drove returns despite elevated energy import costs from the ongoing Iran conflict. 

Fixed Income Markets⁴

• U.S. bond market returns were modestly positive in April as interest rates moved marginally lower. The Bloomberg U.S. Agg returned +0.11%, with credit spreads stable. High yield outperformed at +1.7% as risk sentiment improved alongside equities. 

Specialty Markets⁵

• Oil prices remained historically elevated throughout April, with Brent trading between roughly $100 and $126. REITs rallied +9.0%, supported by the improved equity risk environment. 
• The IPO for Space X will be in June. It will be the largest IPO ever.

Sectors⁶

• Information Technology (+17.5%) and Communication Services (+18.5%) led all sectors in April, reversing Q1’s underperformance. Energy was the lone negative sector at -3.5%, a notable reversal given Brent crude surging from $80 to $114–$126 over the period.
  

Here’s a snapshot of the S&P 500 performance for the month of April:

Chart from Finviz

see chart here

There’s a ton of talk about the labor market and AI job displacement fears, but it’s interesting to note that April Consumer Confidence came in better than expected, mostly due to Future Expectations about the outlook for jobs.

Robert Half and KForce reported Q126 earnings, commentary was positive:

Robert Half: 

• Activity levels improved throughout March and into early April, with increased client engagement and a higher number of job orders, particularly in technology modernization, data initiatives, and IT infrastructure.
• Pent-up demand and lean resources are fueling demand for contract work, especially for SMB clients who are at their limit with existing employees 
• There is limited evidence that AI adoption is leading to widespread job displacement; instead, AI is reshaping work and increasing the need for skilled professionals with domain expertise and AI skills. 

KForce:

• Employers had been supplementing work normally pushed to temporary models by retaining staff, but have now reached a point where they cannot complete the necessary work internally. 
• Demand for technology is broad-based, with growth in AI-related, data, digital, and cloud projects, as well as platform and application development roles. 
• Q1 sequential performance was significantly better than historical seasonality, driven by fewer project ends around year-end and a faster-than-normal rebound in new assignment activity, with client visits up approximately 10% year-over-year, job orders up approximately 20% year-over-year, and new assignment starts up in the low double digits.

Strength Drives More Strength

see chart here

Bad Statistic

Americans spent over $109 billion on lottery tickets last year, which is more than they spent on movies, books, concerts and sports tickets – combined. Ouch! That is not the way to save for retirement. 

Bottom line, we continue to see a constructive investment environment, albeit one that will likely require patience and discipline over the balance of 2026. Bouts of volatility remain likely, but fundamentals, particularly earnings, continue to underpin our confidence long term. Investors are encouraged to maintain long‑term allocations, stay diversified, and use periodic pullbacks as opportunities.

Thank you for your trust along your financial journey.

 

Previous Commentary:

• March 2026 Market Commentary
• January 2026 Market Commentary
• December 2025 Market Commentary
• November 2025 Market Commentary

Disclosures and references:

 Investment Advisory Services offered through Global Retirement Partners, LLC DBA Connor & Gallagher OneSource, an SEC registered investment advisor.  

1-6 All data referenced in the table and comments supplied by Morningstar.

This document is a general communication being provided for informational purposes only. It is educational in nature and not designed to be taken as advice or a recommendation for any specific investment product, strategy, plan feature or other purpose in any jurisdiction, nor is it a commitment from Global Retirement Partners, LLC or any of its subsidiaries to participate in any of the transactions mentioned herein. Any examples used are generic, hypothetical and for illustration purposes only. This material does not contain sufficient information to support an investment decision, and it should not be relied upon by you in evaluating the merits of investing in any securities or products. In addition, users should make an independent assessment of the legal, regulatory, tax, credit, and accounting implications and determine, together with their own financial professionals, if any investment mentioned herein is believed to be appropriate to their personal goals. Investors should ensure that they obtain all available relevant information before making any investment. Any forecasts, figures, opinions or investment techniques and strategies set out are for informational purposes only, based on certain assumptions and current market conditions and are subject to change without prior notice. All information presented herein is considered to be accurate at the time of production, but no warranty of accuracy is given and no liability in respect of any error or omission is accepted. It should be noted that investment involves risks, the value of investments and the income from them may fluctuate in accordance with market conditions and taxation agreements and investors may not get back the full amount invested. Both past performance and yields are not reliable indicators of current and future results.

This material is for general information only and is not intended to provide specific advice or recommendations for any individual. There is no assurance that the views or strategies discussed are suitable for all investors or will yield positive outcomes. Investing involves risks including possible loss of principal. Any economic forecasts set forth may not develop as predicted and are subject to change. References to markets, asset classes, and sectors are generally regarding the corresponding market index. Indexes are unmanaged statistical composites and cannot be invested into directly. Index performance is not indicative of the performance of any investment and do not reflect fees, expenses, or sales charges. All performance referenced is historical and is no guarantee of future results. Any company names noted herein are for educational purposes only and not an indication of trading intent or a solicitation of their products or services. Connor & Gallagher OneSource doesn’t provide research on individual equities. All information is believed to be from reliable sources; however Connor & Gallagher OneSource makes no representation as to its completeness or accuracy.

*Securities offered through LPL Financial, Member FINRA & SIPC.  Investment advisory services offered through Global Retirement Partners, LLC DBA Connor & Gallagher OneSource, an SEC registered investment advisor.  Connor & Gallagher OneSource and Connor & Gallagher Benefit Services are separate entities from LPL Financial.