Equity markets rebounded sharply in April following a weak March, supported by resilient earnings, easing rate concerns, and improving risk appetite. Leadership broadened during the month, with Health Care and Financials outperforming, while commodity-linked sectors lagged as metals prices weakened.
Benchmark | Mar-2026 | Apr-2026 |
|---|---|---|
S&P 500 Total Return | -4.98% | 10.49% |
S&P/TSX Total Return | -4.32% | 3.81% |
Source: FactSet
Global Market Overview
United States
Inflation moderated slightly during the month, while employment data remained firm enough to support expectations of continued economic expansion. Treasury yields stabilized after recent volatility, helping fuel a rebound in growth-oriented equities and supporting broader market sentiment.
Europe
Inflation trended lower while economic growth remained modest. Markets increasingly priced potential policy easing as central bank officials acknowledged slowing regional price pressures. Equity markets moved higher alongside improving sentiment, while the euro remained relatively stable against the U.S. dollar.
Canadian Market Overview
Canadian equities recovered alongside global markets in April, with the S&P/TSX gaining 3.81% despite weakness in commodity-linked sectors. Financials and Health Care led the advance, helping offset declines in Materials as metals prices softened.
Economic data continued to point toward slower but stable domestic activity. The easing inflation pressures and softer growth reinforced market expectations that the Bank of Canada may move toward a dovish policy stance later in the year.
Canadian Sector Performance
Health Care: +13.2%
Driven by the strong performance of healthcare-service providers.Financials: +10.6%
Advanced on stable credit conditions and moderating rate expectations.Industrials: +6.3%
Gained on improving manufacturing activity and transportation demand.
Important Dates
May 8: Canada Unemployment Data
May 12: U.S. CPI Inflation
May 20: Canada CPI Inflation
May 29: Canadian GDP Data
Final Thoughts
April’s rebound suggests investors remain willing to re-enter risk assets when inflation pressures ease and earnings remain resilient. The next phase for markets will likely depend on whether inflation continues to moderate without a significant deterioration in economic growth or labor market conditions.