STOCK MARKET RECAP APRIL 2026
Just one month ago we were dealing with a declining stock market due to the fallout from the war in the Middle East. The stock market was down about 6%.
On April 1st, the market reversed that trend and has since climbed 13%. All the major market indices have risen to new all-time highs.
At the beginning of April, Wall Street began to look past the situation in the Middle East.
Even though the Strait of Hormuz is still closed, the market is expecting it to open very soon. Oil prices remain high, but the expectation is that they will fall rapidly once the Strait is reopened.
When we look at the wider trend since last October, we were stuck in a flat cycle until early March. It then looked like the trend broke in a downward move – only to be reversed by the latest move higher in April.
I expect continued volatility until ships can traverse the Strait freely. Wall Street does not care about the war, only the movement of oil and other products through the Strait.
Bullishness about corporate earnings is the big driver behind the recent market increases. Corporate earnings saw above average increases last year and the market is expecting even higher profit growth in 2026.
Tech stocks have led the recent stock market rally. Semiconductor stocks increased by 30% over the last month even with yesterday’s pullback.
Important inflation readings will be released soon. The focus will be on core inflation excluding energy prices. The Fed is expected to hold steady on interest rates this week.
Stay Disciplined My Friends,
Phil
Disclaimers The Beyond Buy & Hold newsletter is published and provided for informational and entertainment purposes only. We are not advising, and will not advise you personally, concerning the nature, potential, value, or suitability of any particular security, portfolio of securities, transaction, investment strategy or other matter. Beyond Buy & Hold recommends you consult a licensed or registered professional before making any investment decision.
Investing in the financial products discussed in the Newsletter involves risk. Trading in such securities can result in immediate and substantial losses of the capital invested. Past performance is not necessarily indicative of future results. Actual results will vary widely given a variety of factors such as experience, skill, risk mitigation practices, and market dynamics.
Comments