MARKETS
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Global markets returned to new highs after a de-escalation of the conflict with Iran and both strong earnings and labor reports. The global equity index (MSCI ACWI IMI) increased by +10.16% in April and is up +7.24% YTD. The S&P 500, which tracks large cap U.S. stocks, increased by +10.49% in April and is up +5.70% YTD. The Russell 2000 Index, which tracks domestic small cap stocks increased by +12.21% in April and is up +13.21% YTD. The International developed equity index (MSCI EAFE) increased by +7.45% in April and is up +6.12% YTD. The emerging markets index (MSCI EM) increased by +14.71% in April and is up +14.52% YTD.
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In April, bond yields increased across maturities; the 30-year U.S. Treasury bond yield increased by 10 bps to 4.98%, the 10-year yield increased by 10 bps to 4.40%, and the 2-year yield increased by 9 bps to 3.88%. The Bloomberg U.S. Aggregate Index, which is a measure of U.S. Bond prices, increased by +0.11% in April and is up +0.07% YTD. Bond yields and prices have an inverse relationship.
ECONOMIC AND GEOPOLITICAL HEADLINES
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According to the Bureau of Economic Analysis, U.S. real gross domestic product (GDP) increased in the fourth quarter of 2025 by +0.5%, bringing the overall annual economic growth for 2025 to 2.1%. The advance estimate for the first quarter of 2026 is +2.0%.
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The April Services PMI was 53.60%, down -0.40% from March. The April Manufacturing PMI remained steady at 52.70%. Per the Institute for Supply Management (ISM), a reading above 50 is considered economic expansion and below 50 is considered economic contraction.
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As reported by the Bureau of Labor Statistics on May 8, 2026, April non-farm employment increased by 115,000 jobs, and the unemployment rate unchanged at 4.3%. In April employment increased in health care, transportation and warehousing, and retail trade. Average Hourly Earnings (wages) increased by 3.6% year-over-year.
PERFORMANCE UPDATES
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The Equity Fund increased by +9.08% in April and is up +7.26% YTD. The Bond Fund increased by +0.47% in April and is down -0.09% YTD. The Stable Value Fund was up +0.32% for April and is up +1.03% YTD. The Northern Trust World Selection Index Fund increased by +10.21% in April and is up +5.16% YTD.
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The Sustainable Balanced Fund increased by +5.89% in April and is up +3.58% YTD. The Target Annuitization Date TAD 2025; TAD 2030; TAD 2035; TAD 2040; TAD 2045; TAD 2050; TAD 2055; TAD 2060; and TAD 2065 returns were +2.04%, +3.42%, +4.82%, +5.71%, +6.38%, +7.05%, +7.66%, +7.69%, and +7.69% respectively for April and is up 2.02%, +2.90%, +3.82%, +4.54%, +5.18, +5.63%, +5.96%, +6.00%, and +5.97% respectively YTD.
Note: Fund performance values are estimates.