Below, you will find our monthly market update and relative information that pertains to the current state of the economy.

Market Update

• All the market indices closed higher than the beginning of the month.
  • • The S&P 500 finished at 7,209.01 pts (+10.42%)
    • The DOW finished at 49,652.14 pts (+6.45%)
    • The NASDAQ finished at 24,892.31 pts (+15.29%)
    • The TSX finished at 33,964.33 pts (+3.65%)

Canada

Monetary Policy

• On April 29^th, The Bank of Canada (“BoC”) decided to leave the overnight lending rate unchanged.
  • Currently, the overnight rate is 2.25%, the Bank Rate is at 2.50%, and the deposit rate is at 2.20%.
  • “Governing Council decided to maintain the policy rate at 2.25%. We are closely monitoring the impact of the conflict in the Middle East and how the economy is responding to US tariffs and trade policy uncertainty. Governing Council is looking through the war’s immediate impact on inflation but will not let higher energy prices become persistent inflation. As the outlook evolves, we stand ready to respond as needed. The Bank is committed to maintaining Canadians’ confidence in price stability through this period of global upheaval.”
  • The next interest rate announcement for 2026 will take place on June 10^th.

Economic Data

• Canada’s economy added 14,100 jobs in March which is slightly below what economists had expected.
  • Most of the job gains were concentrated in the part-time sector, whereas the full-time sector shed jobs over the month.
• Canada’s annual inflation rate increased to 2.4% in March from 1.8% in the previous month.
  • The increase was largely in response to higher energy prices, brought on by the conflict in the Middle East. The price growth for shelter and recreation also accelerated in March.
• Canada’s economy expanded by 0.2% in February over the previous month, matching economists’ expectations.
  • An increase in manufacturing and transportation helped offset a drop in retail trade over the month.

U.S.

Monetary Policy

• The Fed decided to leave the target range for the federal funds rate unchanged in its April meeting.
  • The target range for the federal funds rate is 3.50-3.75%.
• “The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. Developments in the Middle East are contributing to a high level of uncertainty about the economic outlook. The Committee is attentive to the risks to both sides of its dual mandate. In support of its goals, the Committee decided to maintain the target range for the federal funds rate at 3‑1/2 to 3‑3/4 percent.”
• The next Fed meeting will take place on June 16^th & 17^th.

Economic Data

• The annual inflation rate in the U.S. increased to 3.3% in March from 2.4% in February, which is its highest level since May 2024. March’s increase was driven by a 12.5% rise in energy costs.
• The personal consumption expenditure price index (PCE) in the U.S. increased by 2.8% year-over-year in February.
  • The annual core PCE increased by 3.0% in February, down slightly from January’s 3.1% increase.
• U.S. GDP grew by 2.0%, annualized, over the first quarter of 2026. While up from the previous quarter, it did miss the 2.3% annualized growth economists were expecting.

Global

• China’s gross domestic product (GDP) expanded by 5.0% year-over-year in the first quarter of 2026.
  • This marked the fastest pace of GDP growth since the second quarter of 2025, putting growth on pace to top the government’s target for 2026.
• The Bank of Japan and Bank of England both held their policy interest rates steady, as did the European Central Bank (ECB).
  • The ECB did note that a rate hike was considered at its April meeting and is a possibility at its next meeting in June.
• Europe’s annual inflation rate accelerated to 3.0% in April from 2.6% in the previous month. This is up markedly from the 1.9% rate in February, before the conflict in the Middle East began.

Notes From our Firm

• Whether you already have a financial plan or are starting from scratch, we can help you build a clear path to retirement.
• If it’s been a while since your last review, we encourage you to contact your advisor directly to ensure you plan remains aligned with your goals. We are happy to work with you and help you achieve them!

As always if you have any questions, please feel free to reach out to us. Or, if you know someone who would like an opinion on their investments or insurance, please connect us! There is no better compliment than a referral from one of our current clients.

Yours Truly,

The Team, C.R. Smith Financial

Community, Respect, Service & Financial Integrity