U.S. Stocks are Expected to Achieve Another Good Performance in April

The S&P 500 index rose 4.2%, and even wrote its best monthly performance since November last year. But the next good news that may be even better is that April is usually one of the strongest months for US stocks.

According to experts,  the stock market has always been seasonally lower at the end of March, but instead it may provide bull market investors with an opportunity before the seasonal rise in early April; according to Bank of America Statistics show that the average rate of return for the first 10 trading days in April was 0.88% (median 1.12%), while the average rate of return for the last 10 trading days in March was negative 0.29%.

For most months, the performance of the stock market at the beginning of the month is usually better than at the end of the month. Sutermeier said that the monthly seasonal trend of the S&P 500 since 1928 shows that the performance of the 1-10 days of each month is usually stronger than the performance of the last 10 trading days. The stock market in the first three months of this year has followed This seasonal pattern.

Experts said that based on historical experience, April is the “second best” month for the stock market each year, and most of the increase tends to occur in the first 18 days of the month.

However, not all strategists expect that the stock market will be smooth sailing in April, and one of the danger signs is the rise in government bond yields. Ally Invest’s head of investment strategy, Bell, said: “I think the stock market may continue to fluctuate for one or two months. Investors are still digesting the new environment they face, that is, interest rates and inflation are higher.”

 

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