Global Index Performance

Indices	Month-to-date at April 30 2026	Year-to-date at April 30 2026
Canadian Bonds1	0.12%	0.35%
Canadian Large Cap Equities2	3.81%	7.90%
U.S. Large Cap Equities3	10.49%	5.70%
Developed Market Equities4	5.19%	5.48%
Emerging Market Equities5	13.28%	15.75%

Source: FactSet as of May 7, 2026.

Fixed Income*

The Bank of Canada held its overnight policy rate unchanged at 2.25% in April, maintaining a cautious and data-dependent stance as policymakers balanced moderating inflation against slowing economic momentum. Recent Canadian economic data remained mixed, with manufacturing activity rebounding while preliminary GDP estimates pointed to softer overall growth. Regarding elevated oil prices, the BoC emphasized that monetary policy cannot directly influence global energy prices but remains focused on preventing higher energy costs from feeding into persistent inflation. Policymakers noted that broader core inflation measures have continued to ease and longer-term inflation expectations remain well anchored, though the outlook for oil prices remains uncertain.

In the United States, the Federal Reserve also maintained a measured approach as resilient labour markets and steady consumer spending continued to support economic activity. Bond markets experienced moderate volatility ongoing macroeconomic uncertainty. during the month as investors reassessed the outlook for inflation and central bank policy amid ongoing geopolitical tensions. Yield curves remained relatively flat by historical standards, while U.S. credit spreads stayed tight despite ongoing macroeconomic certainty.

Equities* 

Canadian equities rebounded in April after weakness in March, supported primarily by strength in the energy sector as oil prices remained elevated amid ongoing Middle East tensions. Financials and industrials also contributed positively, while technology stocks posted a modest recovery but continued to lag broader market leadership.

U.S. equities advanced sharply during the month, with the S&P 500 delivering its strongest monthly performance since late 2020. Investor sentiment improved as first‑quarter earnings season exceeded expectations, led by large‑cap technology and artificial‑intelligence‑related companies. Market leadership remained concentrated in mega‑cap technology names, as sustained demand for AI infrastructure, cloud computing, and semiconductor capacity continued to drive performance despite ongoing valuation concerns and elevated capital spending. Geopolitical tensions involving the United States and Iran continued to influence markets throughout April, particularly through their impact on energy prices and inflation expectations. While periods of diplomatic progress late in the month helped reduce near-term volatility, uncertainty surrounding the conflict and the Strait of Hormuz remains an important risk for investors.

International and emerging markets also posted solid gains during the month as improving investor sentiment and easing near-term geopolitical concerns supported equity markets. While European markets continued to face pressure from higher energy costs and slowing growth, and emerging markets remained sensitive to global trade and commodity dynamics, overall performance across international markets improved meaningfully during April.

 

Market Outlook

Geopolitical developments and elevated energy prices remain important risks for both central banks and financial markets. At the same time, North American economic activity continues to demonstrate resilience, supported by healthy corporate earnings, solid household balance sheets, and ongoing investment in technology and infrastructure. Trade uncertainty remains elevated, with negotiations surrounding the future renewal of CUSMA expected to intensify in the coming months. International trade flows are likely to remain sensitive to both the timing and scope of future U.S. tariff actions.

In Canada, the combination of stable monetary policy, improving manufacturing activity, and strong commodity exposure continues to provide relative support to the domestic economy. Higher oil prices have increased costs for households and businesses globally, but they have also strengthened revenues flowing into Canada’s energy-producing regions and supported the country’s export backdrop. While volatility may persist in the near term, particularly around geopolitics and trade policy, maintaining a diversified long-term approach remains important in the current environment.

*Data sourced from FactSet as of May 7, 2026. 

 

 

 

1. As measured by the FTSE Canada Bond Universe Index
2. As measured by the S&P/TSX Composite Total Return Index
3. As measured by the S&P 500 Total Return Index in CAD
4. As measured by the MSCI EAFE Total Return Index in CAD
5. As measured by the MSCI EM Total Return Index in CAD