Q2 2026 Market Update

Q2 2026 Market Update: Navigating Headlines, Staying Focused The first quarter of 2026 was a reminder that markets don’t move in straight lines. After a strong 2025, markets pulled back modestly to start the year. The S&P 500 declined -4.3%, the Nasdaq fell -7.0%, and the Dow slipped -3.2%. Bonds were steady, with the Bloomberg U.S. Aggregate Bond Index roughly flat.  While headlines focused on uncertainty, this type of movement is completely normal — and expected. Markets Experienced Their First Pullback of the Year Pullbacks can feel uncomfortable, but they are part of the investing experience. Historically, the S&P 500 experiences an average intra-year decline of about 15%, even in years that finish positive. It’s also common to see 4–5 pullbacks of 5% or more in a single year.  Last year alone saw six pullbacks, yet the market still finished up 18%. The takeaway: short-term declines are normal — long-term discipline is what matters. Q2 2026 Market Update Market pullbacks happen regularly — even during strong years. This chart shows how common they are. Geopolitics and Oil Drove the Headlines The biggest story this quarter was the conflict in the Middle East. This pushed oil prices sharply higher:
  • Brent crude rose to $118 per barrel 
  • WTI crude climbed above $100 
  • Gasoline prices reached around $4 per gallon 
These types of shocks can impact markets in the short term, but history shows they are often temporary. Similar spikes in 2022 pushed gas above $5 — and then declined within months. Markets tend to adjust — even when headlines feel overwhelming. The Economy Is Cooling — But Still Growing The economic picture remains mixed, but overall stable.
  • Inflation has eased to around 2.4%–2.5% 
  • Unemployment remains relatively low at 4.4% 
  • Job growth has slowed, reflecting a cooling labor market 
Importantly, fewer workers are entering the workforce, which helps explain why unemployment hasn’t risen sharply. In simple terms: the economy is slowing, but not breaking. Markets Are Shifting Beneath the Surface One of the most important stories this quarter isn’t the overall market — it’s what’s happening underneath. Performance across sectors has varied widely:
  • Energy surged nearly +40% 
  • Defensive sectors like Utilities and Consumer Staples performed well 
  • Technology declined roughly -9% 
The gap between the best and worst sectors widened to nearly 50 percentage points. Sector performance has diverged Q2 2026 Market Update Different sectors perform at different times — diversification helps smooth the ride when leadership shifts. This shift is important. After years where a handful of tech stocks drove returns, leadership is broadening — a healthy sign for markets overall. Policy and Markets Continue to Evolve Trade policy and tariffs also shifted this quarter following a Supreme Court ruling, but the broader direction remains the same. Markets have navigated similar policy changes before — and adapted over time. The Bottom Line The first quarter brought volatility, but also perspective.
  • Markets pulled back modestly 
  • Oil prices surged due to geopolitical events 
  • The economy cooled but remained stable 
  • Leadership shifted across sectors 
None of this is unusual — and all of it reinforces a core principle: Successful investing isn’t about avoiding uncertainty — it’s about being prepared for it. Your portfolio is designed to navigate environments like this. Staying diversified and focused on long-term goals remains the most reliable path forward.

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Disclosure

Charts and data provided by Clearnomics, Inc. @ 2026. All rights reserved. Used with permission. Information is believed to be reliable but is not guaranteed. This material is for informational purposes only and should not be construed as investment advice, a solicitation, or an offer to buy or sell any security.

This presentation is not an offer or a solicitation to buy or sell securities. The information contained in this presentation has been compiled from third-party sources and is believed to be reliable; however, its accuracy is not guaranteed and should not be relied upon in any way whatsoever. This presentation may not be construed as investment, tax or legal advice and does not give investment recommendations. Any opinion included in this report constitutes our judgment as of the date of this report and is subject to change without notice.

Additional information, including management fees and expenses, is provided on our Form ADV Part 2, available upon request or at the SEC’s Investment Adviser Public Disclosure website, www.adviserinfo.sec.gov. Past performance is not a guarantee of future results.

‘Projected’ figures are estimates as of April 7, 2026 and are not guarantees of future results.

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General Disclosure

This presentation is not an offer or a solicitation to buy or sell securities. The information contained in this presentation has been compiled from third party sources and is believed to be reliable; however, its accuracy is not guaranteed and should not be relied upon in any way, whatsoever. This presentation may not be construed as investment advice and does not give investment recommendations. Any opinion included in this report constitutes our judgment as of the date of this report and are subject to change without notice.
 
Additional information, including management fees and expenses, is provided on our Form ADV Part 2, available upon request or at the SEC’s Investment Advisor Public Disclosure site. As with any investment strategy, there is potential for profit as well as the possibility of loss.  We do not guarantee any minimum level of investment performance or the success of any portfolio or investment strategy. All investments involve risk (the amount of which may vary significantly) and investment recommendations will not always be profitable. Past performance is not a guarantee of future results.