Market Recap – April 2014

The Markets

The rotation out of momentum stocks that began in early March continued in April, hitting many of the tech and biotech high-fliers that had soared earlier in the year. That cost the Nasdaq and Russell 2000 dearly, leaving both with negative year-to-date returns. The Russell ended the month down 6.7% from its early March year-to-date high, while the Nasdaq slumped 5.6% over the same period. However, valuation concerns didn’t affect equities across the board. After setting a fresh closing high early in the month, the S&P 500 managed to hang on to its gains, emerging from April the clear year-to-date leader. Meanwhile, the Dow managed to squeak into positive territory for 2014 on the month’s final trading day by surpassing the all-time high it had not seen since New Year’s Eve. The Global Dow survived April’s volatility relatively well, especially considering geopolitical tensions over Ukraine.

Meanwhile, the rotation in equities, a steady hand at the Fed, and little inflation in sight helped keep the benchmark 10-year Treasury yield low. The price of gold backed off after a $43-an-ounce mid-month spike to end April just below $1,300 an ounce, while the price of oil hovered within a dollar or two on either side of $100 a barrel.

Chart reflects price changes, not total return. Because it does not include dividends or splits, it should not be used to benchmark performance of specific investments.

Source: Broadridge