The S&P 500 closed above 7,000 for the first time in April, as equity markets largely looked through the ongoing Iran conflict and instead rallied powerfully behind the continued strength of technology and AI-related spending—driving one of the strongest monthly performances in recent memory.
Information Technology and Communication Services each advanced more than 17% for the month, with semiconductors at the epicenter of a decidedly high-beta, risk-on rally that began with a short squeeze following the Iran ceasefire announcement and gained traction as
the hyperscalers once again raised their capex forecasts for 2026.
Earnings expectations continue to move higher, with the S&P 500 now projected to grow earnings approximately 17% in 2026—a meaningful upward revision that, combined with receding macro tail risks, provided strong fundamental underpinning to what might otherwise be dismissed as a momentum-driven move.
The Fed held rates steady at 3.50%–3.75% in what was almost certainly Chair Powell’s final meeting, as the decision produced a rare 8–4 dissenting split—the most since 1992— signaling the complex rate environment that incoming Chair Kevin Warsh will inherit as he prepares to take the helm in mid-May.
The 10-year Treasury traded in a relatively contained range of 4.25%–4.43%, closing at 4.38% as markets continued to test the 4.50% resistance level on concerns that a lack of Middle East resolution could keep energy inflation elevated and complicate the Fed’s path forward.
Energy finished the month in negative territory, as the worst-case scenarios around prolonged Strait of Hormuz disruption appear, for now, to have been taken off the table.
Equity Market Overview
The S&P 500 closed above 7,000 for the first time in April, capping a remarkable month that saw equity markets largely look through the ongoing uncertainty surrounding the Iran conflict and instead rally powerfully behind the continued strength of technology and artificial intelligence-related spending.
What began as a short squeeze following a ceasefire announcement early in the month quickly gained broader traction, ultimately driving one of the strongest monthly performances in recent memory for risk assets
Information Technology and Communication Services led all sectors, each advancing more than 17% for the month.
Growth Takes the Lead
Growth Takes the Lead
Performance Review & Outlook
Highlights
Equity Market Overview
The S&P 500 closed above 7,000 for the first time in April, capping a remarkable month that saw equity markets largely look through the ongoing uncertainty surrounding the Iran conflict and instead rally powerfully behind the continued strength of technology and artificial intelligence-related spending.
What began as a short squeeze following a ceasefire announcement early in the month quickly gained broader traction, ultimately driving one of the strongest monthly performances in recent memory for risk assets
Information Technology and Communication Services led all sectors, each advancing more than 17% for the month.
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