Equities rebounded in April, recapturing some of the losses suffered in March. Stocks were enhanced by reopening prospects and stimulus efforts targeting businesses. All eleven sectors composing the S&P 500 Index were positive in April, a strong reversal relative to March. Health Care, Technology, and Consumer Staples were among the top performing sectors for the month. The collapse in U.S. oil prices, as measured by West Texas Intermediate (WTI), drove energy related stocks lower producing dismal revenue and profit expectations.
Earnings dominated equity markets as corporate earnings have become a barometer of the impact that the pandemic is having on the economy. Some analysts can’t explain the discrepancy between the economy and the stock market, with equites propelling higher in April as dismal economic data points to subdued growth.
Sources: S&P, Bloomberg