Despite negative returns the final trading day in April, the S&P 500 posted its strongest month since January 1987. The benchmark index surged nearly 13% last month, reaching a level just 1.1% below the end of February. Remarkably, driven by four massive federal relief programs and expectations, the economy may soon begin to heal from the business closures, the S&P 500 has recovered more than 30.4% from its March 23-low.
- The S&P 500 and Dow Industrials (+11.2%) had their strongest monthly returns in 33 years.
- Among the three major U.S. equity indices, the tech-heavy Nasdaq Composite (+15.5%) performed best, having its largest monthly gain since June 2000.
- April’s historic performance was just the 12th month since WWII in which the S&P 500 gained over 10%. Only one other month, October 1974, had a double-digit rally following a preceding month with a double-digit percentage loss.
- Fixed-income markets stabilized in April, in large part due to aggressive Fed interventions and several fiscal economic relief packages that were signed into law.
The Monthly Recap is published by Cetera Investment Management LLC, an SEC registered adviser owned by Cetera Financial Group. Cetera Investment Management provides market perspectives, portfolio guidance, model management, and other investment advice to its affiliated broker-dealers, dually registered broker-dealers and registered investment advisers.
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