April: Rebound in Stocks, Carry in Bonds (E260)

April market performance saw the S&P 500 gain 10.49%, driven heavily by the tech sector, while energy equities unexpectedly declined. Bond markets faced rising rates across the curve, though investment-grade corporate bonds provided positive returns. Macroeconomic indicators reveal a resilient economy, with durable goods orders and first-quarter GDP growth bolstered by significant AI and data center investments. However, inflationary pressures persist, as PCE data shows both headline and core metrics trending away from the 2% target. The recent FOMC meeting highlighted a shift in policy communication, with four dissents prompting a move toward a balanced, data-dependent stance rather than a continued easing bias. Despite strong labor market indicators, including historically low jobless claims, the combination of rising energy prices and persistent inflation remains a critical focus for future economic stability.