April 1, 2026

U.S. equities declined modestly over the past month, with the S&P 500 falling approximately 2% and recording its first stretch of five consecutive weekly losses since 2022. Market sentiment was influenced by a mix of geopolitical developments, evolving economic data, and shifting expectations around interest rates.

Tensions in the Middle East have disrupted traffic through the Strait of Hormuz, a critical global energy corridor. These disruptions have constrained the flow of oil, liquefied natural gas (LNG), and key agricultural inputs, contributing to inflationary pressures globally. While the United States, as a net energy exporter, remains relatively more insulated than many countries, rising global energy prices can still impact domestic fuel costs and overall inflation.

Economic data continues to present a mixed picture. Labor markets in the U.S. have remained relatively stable, though there are signs of gradual moderation. Consumer spending is also showing early signs of softening, particularly among lower-income households that are more sensitive to higher costs of essential goods. In fixed income markets, Treasury yields remain elevated as investors reassess the path of inflation and monetary policy, including potential actions by the Federal Reserve.

Despite near-term volatility, longer-term structural trends remain intact. Ongoing investment in artificial intelligence and digital infrastructure continues to influence capital allocation and support productivity and innovation across sectors.

We continue to emphasize diversified portfolios with a focus on high-quality investments, strong balance sheets, and durable competitive advantages, aligned with each client’s long-term objectives and risk tolerance.

Year to date the Dow Jones Industrial Average, S&P 500, and NASDAQ stand at -3.58%, -4.63%, and -7.11%, respectively and the 10-year and 2-year Treasury yields were approximately 4.35% and 3.82%.