Following a 3.6% rise in the United States Stock Market in March, the month of April could promise numerous gains for stock investors as the market begins its rebound from a less than favourable start to the year.
The positive turnaround means that the S&P 500 has been able to successfully recover more than half of its losses from the lowest point of 2022 when it was down 12.5%.
No doubt a welcome turn of events for listed companies and stock investors alike, it is expected that the month of April, traditionally recognized as the best month of the year for stocks, will be the true gamechanger heading into what promises to be an unpredictable second quarter.
In previous years, the S&P 500 has been higher 70% of the time and has gained an average of 1.7% in all Aprils since World War II, according to the research.
While the horizon certainly does look bright for April, further inflationary pressures, a potentially more aggressive Federal Reserve monetary policy, and the ongoing crisis in Russia-Ukraine will be the key threats to watch out for. These could determine whether second-quarter stock gains are in the future for U.S investors or April 2022 will signal a new dawn in the history of the U.S stock market.
