May 1, 2026

With the market volatility experienced over the past few months, the S&P 500 has continued to demonstrate resilience, recently reaching new highs. Consensus expectations for corporate earnings growth in 2026 have strengthened relative to 2025, supported in part by continued innovation and investment in technology and artificial intelligence-related sectors.

Markets continue to navigate uncertainty surrounding geopolitical developments and the timing and pace of potential interest rate changes by the Federal Reserve. While recent corporate earnings results have generally been constructive—with many companies reporting above expectations and supporting market momentum—equities experienced modest pullbacks toward month-end, influenced in part by rising oil prices and ongoing geopolitical tensions, which may contribute to periods of increased volatility.

Despite these fluctuations, the major U.S. equity indices—the Dow Jones Industrial Average, S&P 500, and NASDAQ Composite—remain positive for the year to date, reflecting a backdrop of cautious optimism, even as risks remain elevated.

For April, equity markets posted solid gains, with the Dow, S&P 500, and Nasdaq increasing approximately 3.31%, 5.31%, and 7.1%, respectively, with the S&P 500 reaching a new record despite higher energy prices. Geopolitical dynamics—including shipping activity through the Strait of Hormuz—remain an important consideration given their potential impact on global energy supply and price volatility.

From a domestic perspective, the labor market remains relatively stable, with approximately 178,000 jobs added in March, exceeding expectations. The Federal Reserve has maintained its current interest rate policy as it continues to balance its dual mandate of price stability and maximum employment while monitoring inflation trends, including those influenced by energy prices.

Important Disclosure

This commentary is provided for informational purposes only and should not be construed as investment advice or a recommendation to buy or sell any security. Market conditions are subject to change, and past performance is not indicative of future results. All investments involve risk, including the potential loss of principal. Investors should consult with their financial advisor to determine an appropriate investment strategy based on their individual goals, risk tolerance, and financial situation.