Rosemeyer Management Group
April 2026 Market Snapshot
April in Review
April experienced one of the strongest months in recent market memory. The S&P 500 advanced by over 10% to post its strongest month since November 2020 and just its fourth month of 10%+ returns in the past thirty years. Renewed market confidence from strong corporate earnings ruled the day even amidst geopolitical uncertainty and high oil prices. Rotation back into artificial intelligence (AI) stocks led to a tech sector resurgence as the Nasdaq and S&P 500 hit all-time highs. Emerging markets led by AI supply chains in South Korea (+38%) and Taiwan (+26%) also posted one of their strongest months on record. Bonds remained largely flat for the month due to rising yields because of inflation concerns.
| Index | 1 Month | YTD |
|---|---|---|
| Dow Jones Industrial Average | 7.24% | 3.81% |
| Standard & Poor’s 500 Average | 10.49% | 5.70% |
| Russell 2000 (Small Cap Index) | 12.21% | 13.21% |
| Total U.S. Stock Market | 10.20% | 5.83% |
| MSCI ACWI ex USA (Intl. Index) | 9.65% | 8.88% |
| Barclay’s U.S. Agg. Bond Index | 0.11% | 0.07% |
Looking Forward: What’s Ahead for Q3 & Beyond
Robust earnings growth in U.S. companies have reinvigorated market optimism as markets recouped March’s war-related losses and then some. 84% of reporting companies beat consensus earnings estimates (compared to the average of 73%). The average S&P earnings growth estimate is now at 14.5% YoY, indicating that recent market strength has been largely backed up by underlying profitability expansion. While positive sentiment has returned, all eyes remain on the Iran conflict. Although the weekslong ceasefire has been largely held, peace talks remain tenuous at best. News of a peace agreement is likely to be met by positive market reactions, whereas a re-escalation or broadening of hostilities could swing the market in a negative direction.
Investors will also be closely monitoring hints of Federal Reserve policy as Kevin Warsh replaces Jerome Powell as the Fed Chair. In their April meeting, the Federal Open Market Committee presented a wait-and-see approach to interest rate policy. Further 2026 interest rate cuts appear increasingly unlikely if oil prices remain at heightened levels and/or the Middle East conflict prolongs.
On a Personal Note
