Monthly Market Update: April 2026

Insights

The Big Picture

This month, the financial landscape moved from a period of high tension to one of renewed optimism. Geopolitical events in the Middle East, which had previously caused a spike in energy prices and general market anxiety, took a turn toward resolution. Following news of a ceasefire and the crucial reopening of the Strait of Hormuz, global markets experienced what is known as a relief rally.

When uncertainty clears, markets often respond with speed. Both the S&P 500 and the Nasdaq reached new record highs as investors moved back into equities. This reminds us that while headlines can be jarring, the underlying economic engine often remains resilient. Our focus remains on the long-term trends that survive the daily news cycle, ensuring your plan is built on discipline rather than reaction.

Global Equities and the “AI Mega Force”

The recent surge in stock prices was not solely due to geopolitical relief. We are witnessing what many analysts call a “supercharged” investment cycle driven by Artificial Intelligence. This is no longer just a theoretical concept for the future. It is a present-day “mega force” that is fundamentally changing how capital is spent across the globe.

Large technology companies, often referred to as hyperscalers, have increased their planned spending on infrastructure by significant margins. In some cases, these spending estimates have risen by 25% or more just since last October. This level of investment suggests a deep conviction in the productivity gains AI can provide.

What this means for your strategy:

• Broadening Corporate Growth: While the technology sector is the primary driver, we see earnings expectations rising across almost all global markets. This includes emerging economies where tech manufacturing and services are centered.
• Valuation vs. Real Value: It is easy to assume that record highs mean stocks are “too expensive.” However, when we look at the actual earnings growth of these companies, many valuations remain in line with the broader market averages.
• Regional Diversity: While the U.S. remains the leader in tech innovation, other regions like Europe and Japan are showing unique strengths. These markets are benefiting from increased spending in infrastructure and national defense, providing a helpful balance to a tech-heavy portfolio.

Fixed Income: Navigating Yields and Inflation

The bond market has experienced its own set of shifts this month. Fixed income remains a critical component of a coordinated plan, acting as both a stabilizer and a source of reliable cash flow. We have seen bond yields pull back from their recent peaks as oil prices stabilized, which generally leads to a rise in bond prices.

Inflation data continues to be a central focus for central banks. While energy costs caused a temporary bump in prices during the height of the conflict, recent data from the U.S. suggests that underlying price pressures are beginning to cool. This stability is a welcome sign for long-term planning.

Current highlights in the fixed income market:

• A “Divergent” World: We are seeing different approaches from central banks across the globe. While the U.S. remains cautious, some European banks are beginning to shift their stances. This “policy divergence” creates specific opportunities to find value in high-quality credit that might not have existed six months ago.
• Income Is Back: For many years, bonds provided very little in the way of actual income. Today, the landscape is different. High-quality bonds now offer meaningful yields, allowing us to build portfolios that work harder for you without taking on excessive equity risk.
• Proactive Risk Management: We are focusing on “duration,” which is simply a measure of how sensitive a bond is to interest rate changes. By balancing short-term and long-term bonds, we aim to protect your principal while capturing current income.

Portfolio Hygiene Checklist

• Review Your Rebalancing: With equities at record highs, your portfolio may be “heavier” in stocks than originally planned. We can look at rebalancing to keep your risk levels on track.
• Check Cash Levels: Ensure your “liquidity bucket” is sufficient for the next six months of expenses so you are not forced to sell during short-term volatility.
• Verify Beneficiaries: Market milestones are a great reminder to ensure your estate documents and beneficiary forms are current.

Office Update

Our team continues to monitor these global trends while coordinating with our network of specialists to keep your strategy proactive. If you have questions about how these events impact your specific goals, or if you have not reviewed your long-term plan in the last six months, please contact your Tomoro advisor to schedule a check-in meeting.

Disclosure: This material is for informational purposes. It is not individualized investment, tax, or legal advice. All investing involves risk. Strategies depend on each client’s goals, timeline, and risk tolerance. Please consult with a qualified professional before making significant financial decisions.

Sources:

• Goldman Sachs Asset Management, Market Monitor: Week Ending April 17, 2026
• Raymond James Bond Market Commentary
• BlackRock Investment Institute, Weekly Investment Commentary: A supercharged AI mega force