April 2021 Market Recap

April continued the streak of strong performance across most asset classes, with the S&P 500 clocking in at an 11.3% gain for the year.  While the market was troubled with the thought of increased interest rates last month, the Federal Reserve continued their position of being highly accommodative.  While this doesn’t always affect all parts of the yield curve, it did in April with the 10-year Treasury note’s yield decreasing slightly to 1.6%.  These lower interest rates, coupled with consumers opening their wallets contributed to the equity markets hitting all-time highs. 

With increased consumer spending and a large infrastructure stimulus package in the pipeline, some market participants are foreseeing significant inflation ahead.  Interestingly, commodities seem to be pricing in much higher prices than bond market participants.  April showed this in spades with commodities (in particular, lumber) having a torrid month.