Stocks will Need to Deliver on Earnings, but Remember, the Fed has Rate Cuts in its Back Pocket

Equity Markets Post Worst Month of 2024

Amid hotter inflation, hawkish Fed commentary, and geopolitical tensions, all three major stock market indices were down in April. The Dow Jones Industrial Average (-5.0%) had its worst month since September 2022 while both the Nasdaq Composite and S&P 500 posted their largest monthly declines since September 2023 (-4.4% and -4.2%, respectively). US mid-caps (-6.0%) were among the worst performers, followed by US small-caps (-5.5%) and US value (-4.3%). Bonds were also down as 7-10 year US Treasuries fell 3.1%, investment grade corporates decreased 2.6%, and the US Aggregate Bond Index declined 2.4%. Aside from crude oil (-0.4%), commodities fared well as silver was up 5.7%, gold increased 3.0%, and broad-based commodities gained 2.4%.