April Market Recap
A ceasefire in the Middle East lit a fire under stock prices in April, although the gasoline that fueled it continues to get more expensive.
The S&P 500 surged over 10%, its best monthly performance since November 2020 and among the top 10 months for the benchmark in the last 75 years. The NASDAQ jumped more than 15%, its largest monthly gain in six years (April 2020).
Nine of the 11 sectors in the S&P 500 were higher, albeit with a huge disparity between those with exposure to big tech and everything else. Communication Services (+18.4%) and Technology (+17.4%) booked exceptional returns. Health Care (-0.6%) and Energy (-3.5%) were the only sectors to finish in the red.
Benchmark Returns: April 2026 | YTD 2026
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Dow Jones
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S&P 500
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NASDAQ
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+7.14% | +3.31%
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+10.42% | +5.31%
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+15.29% | +7.10%
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If March was defined by economic concerns about the war in Iran, then April highlighted the market’s willingness to look beyond the conflict. A ceasefire announced on April 7 set the table for a sustainable rally in equities. Although no diplomatic agreement has been reached between the US government and Iran, the violence has subdued since then.
The Strait of Hormuz, however, remains effectively closed to shipping, due in part to a US Navy blockade of Iranian ports that began April 13. Global oil supplies remain well below normal levels and energy prices are still elevated. West Texas Intermediate Crude oil ended April trading at $102.50 per barrel. That’s down from a peak of $109 in early April, but still 50% higher than when the war began.
US gas prices averaged $4.39 per gallon at the end of April, up nearly 50% from $2.98 per gallon two months ago. Every day the Strait of Hormuz remains shut, the world is depleting its dwindling supply of strategic oil reserves and commercial stockpiles.
The stock market, however, does not seem particularly worried about the economic fallout from a global energy shock. It took only 10 trading days from the market’s March 30 low point to reach new highs. On April 15, the S&P 500 closed above 7,000 for the first time, effectively erasing its war-related losses. The NASDAQ, meanwhile, ended the month within an eyelash of a new milestone (25,000).
If the ceasefire unlocked the door for an April rally, then corporate earnings kicked the door off its hinges. Roughly two-thirds of the way through Q1 reporting season, S&P 500 companies are on pace to grow earnings by 27.1% from a year earlier. Relative to expectations, that’s more than twice the consensus earnings growth that was forecast as of March 31. In absolute terms, we’re on track for the largest year-over-year earnings growth since Q4 2021.
The Federal Reserve announced no changes to interest rates following its late April meeting, Jerome Powell’s last as Fed Chair. But the meeting was notable for the divide among Fed governors. Four of the Fed’s 12 voting members formally dissented, the most in any Fed meeting since 1992. Three of those argued the Fed should no longer be leaning toward future rate cuts. The fourth dissented in favor of an immediate 0.25% cut. It sets an interesting stage for incoming Fed Chair Kevin Warsh, who is expected to be confirmed by the Senate in May.
Emerging Market equities and small-cap US stocks both delivered strong returns last month. The MSCI Emerging Markets index rose 12.7%. The Russell 2000 increased 12.2%. Generally speaking, both categories were more vulnerable to a falling market in March and rebounded stronger in April.
With Fed policy maintaining the status quo, bond yields traded in a relatively tight range. The 10-year yield on US Treasuries ended April at 4.39% (up from 4.31% a month earlier).
Ben Marks
Chief Investment Officer
Brett Angel
Senior Wealth Advisor
Investment Advice offered through Marks Group Wealth Management, a Registered Investment Advisor.
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Past performance is no guarantee of future results. All indices are unmanaged and may not be invested into directly.
The Standard & Poor’s 500 Index is a capitalization weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries.
The NASDAQ Composite Index measures all NASDAQ domestic and non-U.S. based common stocks listed on The NASDAQ Stock Market. The market value, the last sale price multiplied by total shares outstanding, is calculated throughout the trading day, and is related to the total value of the Index.
The Dow Jones Industrial Average is comprised of 30 stocks that are major factors in their industries and widely held by individuals and institutional investors.
Russell 1000 Growth Index measures the performance of those Russell 1000 companies with higher price to-book ratios and higher forecasted growth values.
Russell 1000 Value Index measures the performance of those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth values.
The Russell 2000 Index is an unmanaged index generally representative of the 2,000 smallest companies in the Russell Index, which represents approximately 10% of the total market capitalization of the Russell 3000 Index.
MSCI EAFE Index consists of the following developed market country indices: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, and the United Kingdom.
The MSCI Emerging Markets Index is a free float-adjusted market capitalization index that is designed to measure equity market performance of emerging markets.
VIX-The Chicago Board Options Exchange’s CBOE Volatility Index, a popular measure of the stock market’s expectation of volatility based on S&P 500 index options. It is calculated and disseminated on a real-time basis by the CBOE, and is often referred to as the fear index or fear gauge.
