Written by Milan Chauhan
Global equity markets had a strong week, with most regions seeing gains. The MSCI All Country World Index rose by +3.3%, helped by solid performance in the US. The S&P 500 increased by +3.7%, while the technology-focused Nasdaq-100 did even better, rising +4.3%. Most of the market’s gains last week came from a strong rally on Tuesday, when the S&P 500 rose by +3.0% and the Nasdaq‑100 increased by +3.5% in a single day.
The UK and Continental European markets also performed well, rising by +4.5% and +4.3% respectively. In the UK, we also saw the FTSE 100 (which includes the UK’s largest companies) continue to outperform the FTSE 250 (which is made up of medium-sized UK companies), with its higher exposure to miners and defence companies being particularly supportive.
As discussed in last week’s piece, periods of volatility like this are a normal part of investing, with short-term setbacks and rebounds being common, and this still remains the case. Last week served as a good reminder of the importance of staying invested. Notably, a large portion of the S&P 500’s weekly return came from a single strong day on Tuesday, highlighting how difficult it is to successfully time the market.
Investor sentiment improved during the week as tensions in the Middle East showed signs of easing. Markets rebounded early in the week as hopes grew that the situation could stabilise. Over the weekend, diplomatic efforts continued, including a joint proposal from China and Pakistan aimed at reducing tensions. The plan focused on a ceasefire, renewed negotiations, and protecting key trade routes and infrastructure helping to reassure investors.
Commodity markets also rallied, led by higher oil prices amid ongoing supply concerns. This supported broader commodity performance, with the Bloomberg Commodity Index rising by +2.4% in Sterling-hedged terms.
In the US, the headline March employment data indicated that the labour market remains resilient however a closer look points to a weaker underlying picture Job growth was stronger than expected and unemployment edged down to 4.3% but this was impacted by a fall in the labour force participation rate and new job creation in the private sector remains weak. Policymakers remain cautious as overall hiring trends are still being closely monitored.
As long‑term investors, portfolios are built with this in mind. They are designed to cope with a wide range of market conditions, including periods when both shares and bonds come under pressure which we have seen in the first quarter of 2026. Staying diversified and focused on long‑term goals remains the most reliable approach.
All performance figures are stated in Sterling terms, unless otherwise specified.
Any opinions stated are honestly held but are not guaranteed and should not be relied upon.
The information contained in this document is not to be regarded as an offer to buy or sell, or the solicitation of any offer to buy or sell, any investments or products.
The content of this document is for information only. It is advisable that you discuss your personal financial circumstances with a financial adviser before undertaking any investments.
All the data contained in the communication is believed to be reliable but may be inaccurate or incomplete. Unless otherwise specified all information is produced as of 7th April 2026
© 2026 YOU Asset Management. All rights reserved.