The monitor shined in the green last month. Markets surged to rebound from the lows of March. Should this continue into May?
Fixed Income: 2-Yr Treas Yield 3.88% | 10-Yr Treas. Yield 4.40%
April proved to be centrally focused on Iran, as was March. This time around though the focus was positive for stocks, but still negative for bonds. Early in the month fixed income experienced a bit of a reprieve as hopes were high that a ceasefire would evolve into a peace deal. As the month wore on and the focus moved squarely to the Strait of Hormuz, that optimism faded. With renewed pressures on oil supply, interest rates floated up for 1 year and longer treasuries. As a reminder interest rates and prices move in opposite directions.
ustreasuryyieldcurve.com
Equities: Dow Jones 7.14% | S&P 500 10.42% | NASDAQ 15.29%
Those equity performance numbers above are for last month, not one year. The month of April was a great month for equities; however, it mainly replenished the losses at the year to date level. Between the ceasefire with Iran and a strong start to earnings season, markets have been on the move. Much of the concerns in the Artificial Intelligence sector seem to be on hold now as the rebound is on. Strong earnings in financials and Technology have taken over the surge in markets from the initial bounce from the ceasefire.
*https://www.morningstar.com/markets as of 5/5/2026
*investing.com/indices/us-spx-500
Conclusion
In all April was a strong month. While fixed income experienced a slip, the shift in price did not outweigh the yield provided by fixed income markets. In other words, when viewed in total return terms, fixed income ended in the green. More impressive was the double-digit performance out of equity markets.
A Look Ahead…
The ceasefire is tenuous at best; however, expectations are in place for continued out-performance of earnings season. That being said, May is known for “Sell in May and Go away”. The recent pullback in March might make this prototypical behavior unlikely.
~ Your Future… Our Services… Together! ~
Your interest in our articles helps us reach more people. To show your appreciation for this post, please “like” the article on one of the links below:
FOR MORE INFORMATION:
If you would like to receive this weekly article and other timely information follow us, here.
This communication is for informational purposes only and should not be considered personalized investment advice. Please consult with a licensed financial professional for advice tailored to your individual circumstances. This communication does not contain any testimonials or endorsements.
Any third-party posts or responses may be sponsored or compensated, and do not necessarily reflect the views of the firm. The firm has not reviewed or verified the accuracy of third-party content.