Exploring April Stock Market History: A Year-by-Year Analysis

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April is a month that's often overlooked when it comes to stock market history, but it's actually a fascinating time to explore.

In 1951, the Dow Jones Industrial Average (DJIA) experienced a significant decline of 7.3% in April, marking one of the worst months for the index that year.

April 1951 was a particularly volatile time for the stock market, with the DJIA experiencing a sharp drop in just a few days.

The S&P 500 also had a tough April in 2000, falling 4.5% as the dot-com bubble began to burst.

Market Recap

April was a tough month for investors, with the Dow experiencing its worst month of 2024, falling by over 1,500 points.

This decline was a significant blow to those hoping for a monetary policy boost to bolster equity valuations.

The market's struggles in April were evident in the Dow's performance, which limped to the worst month of 2024.

2020 Market Recap

The 2020 market was a wild ride, to say the least. Stocks closed out April with a whimper in 2024, marking the worst month of the year so far.

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The Dow's more than 1,500-point decline was by far the index's worst month of 2024, leaving many investors worried about the future of equity valuations.

In a similar vein, the April showers were heavy for investors in 2024, with hopes dwindling for a monetary policy elixir to bolster equity valuations.

Stocks and Bonds Fall

Stocks and bonds took a hit in April, with the Total US Stock Market declining by a little over 4%. Small cap stocks, which have recently been seen as more rate sensitive, lost ground at a faster pace.

The decline in stocks was partly offset by a declining dollar, which helped support international stocks, which lost about 2.5%. This shows that currency fluctuations can have a significant impact on global markets.

Bonds also fell victim to the market downturn, with expectations of higher rates for longer suppressing bond prices. The US Aggregate Bond market is now down for the year, a trend that's not unique to this year.

In fact, bonds were also down late in 2023 but rallied to finish the year with higher returns than cash in general. This volatility highlights the importance of being prepared for market fluctuations.

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April has been a month of volatility in the stock market. The S&P 500 index has seen significant fluctuations, with a peak in 1999 and a trough in 2009.

In 1970, the S&P 500 index had a relatively calm April, with a gain of 1.4%. This was a rare occurrence during a tumultuous year.

The 1999 peak in the S&P 500 index was a result of the dot-com bubble, which had a significant impact on the market. The index closed at 1,469.29 on April 1st of that year.

The 2009 trough in the S&P 500 index was a result of the Great Recession, which had a devastating impact on the market. The index closed at 676.53 on April 1st of that year.

April 2000 saw a significant decline in the S&P 500 index, with a loss of 7.4% for the month. This was part of a larger decline that year.

S&P 500 Index

April has been one of the most consistently positive months for the S&P 500, with the index gaining ground in 73% of Aprils since 1957.

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The S&P 500 has a strong track record in April, with an average return of 2.03% over the last three decades.

Historically, the S&P 500 has performed well in April, with the communications services sector leading the market higher (+15.6%) and the energy sector following close behind (+12.7%).

The S&P 500 has typically continued rising during the months of May, June, and July, with an average return of 2% over the last three decades.

Investors are concerned about hotter-than-expected inflation and strong retail sales in March, which have dampened expectations of a Federal Reserve interest rate cut in June.

A 2.03% gain in April would bring the S&P 500 to 5,361, implying 6% upside from its current level of 5,053.

The S&P 500's average return in April over the last three decades is 2.03%, making it one of the best-performing months of the year.

Frequently Asked Questions

Why did the market go down in April 2024?

The market went down in April 2024 due to higher-than-expected inflation data, which led to increased interest rates and reduced expectations for Federal Reserve rate cuts. This sudden shift in market conditions caused a significant decline in the S&P index.

Do shares go up in April?

Historically, April has been a strong month for stock markets, with the UK's FTSE All-Share index falling just nine times in 39 years. However, past performance is not a guarantee of future results, and it's essential to consider the broader market trends before making investment decisions.

Tommy Weber

Lead Assigning Editor

Tommy Weber is a seasoned Assigning Editor with a keen eye for detail and a passion for storytelling. With extensive experience in assigning articles across various categories, Tommy has honed his skills in identifying and selecting compelling topics that resonate with readers. Tommy's expertise lies in assigning articles related to personal finance, specifically in the areas of bank card credit and bank credit cards.

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