April Monthly Market Review

An excerpt from our April Monthly Market Review: With growth above trend and inflation above target, markets are now expecting that Fed policy will remain tight for longer than previously thought. The combination of high inflation, high rates, and high valuations sent U.S. equities sharply lower in April, eroding previous gains. Outside of the U.S., advanced economy equity markets also declined while emerging markets managed a small gain. U.S. Treasury yields rose as markets reassessed the future path of inflation and Fed policy. Investment grade and high yield bonds also fell in price, although credit spreads remained quite tight, mirroring high equity valuations. The prospect of persistent high interest rates spurred the appreciation of the U.S. dollar against most major currencies. Gold reached a record high during the month, buoyed by geopolitical concerns, stubbornly high inflation, and purchases from China. Oil prices fell in April but remain solidly higher so far this year.

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