Market Recap: April 2022

May 09, 2022
April 2022 Market Recap
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Market commentary

  • A strict COVID lockdown in China and the continued conflict between Russia and Ukraine are deepening supply chain issues and contributing to rising prices.
  • Inflation concerns continue, with an annual CPI increase of 8.3% reported in April.
  • GDP turned negative in the first quarter of 2022.

Select economic and market data

Statistic (monthly unless noted)

Current

Previous

U.S. GDP (quarterly) -1.4% 6.9%
Consumer Confidence 107.3 107.6
Consumer Price Index 1.2% 0.8%
Retail Sales 0.5% 0.8%
Unemployment Rate 3.6% 3.8%
2-Year Treasury Yield 2.71% 2.33%
10-Year Treasury Yield 2.93% 2.34%

 

Equities

  • In the worst month since March 2020 and the beginning of COVID-related lockdowns, equity markets deteriorated in April, with all indices shown at left adding to their year-to-date decline.
  • The Dow Jones Industrial Average and international equities led April performance with the least severe losses; meanwhile, the NASDAQ trails for both April and YTD.
Equities Indices April 2022

 

Fixed income

  • Responding to inflation, rates rose across maturities, leading to negative returns for all but the shortest investments.
  • The Fed raised its Fed Funds rate by 50 basis points, with more increases likely.
  • Corporate bonds followed equities lower and posted the largest negative returns among bond sectors.
Fixed Income Indices April 2022

 

Strategic outlook

  • Neutrally positioned on equities, while slightly favoring international over large cap domestic for long-term return potential.
  • Finding value in select domestic equities while trimming outsized “growth” exposure.
  • Maintaining shorter-duration fixed income structure as a low but rising interest rate environment is likely to persist.
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