The S&P 500 Index had a gain of 6.15% in April 2025, indicating overall positive sentiment in the U.S. market. Global markets also performed well. Growth outperformed value, and the technology heavy Nasdaq 100 was a top performer, along with the Industrial sector and Consumer Discretionary Sector. The Healthcare and Biotech sectors were the worst performing sectors overall. The bond market showed mixed results. High yield bonds outperformed, while Treasury bonds underperformed. Trade tensions with China continue to impact stocks. International and Emerging market equities showed positive results, albeit generally lower than U.S. large cap equities. The economic outlook remains slightly pessimistic and uncertain across most regions.
Economic activity has continued to expand at a solid pace, despite mixed signals across Federal Reserve regions. The unemployment rate has stabilized at a low level, with solid labor market conditions and flat employment in most regions. Inflation remains somewhat elevated, with prices increasing at a moderate pace and expectations of faster increases in the future. The Federal Reserve maintained the target range for the federal funds rate at 4-1/4 to 4-1/2 percent, indicating a cautious approach. All Federal Reserve Districts reported elevated levels of economic and policy uncertainty, affecting business and household decisions.
