The Wednesday Weekly
Financial Market Insight April 8th, 2026
Weekly Market Insight
Welcome to our weekly market update. This newsletter is designed to provide you with current market data, investment insights, and educational information about market trends and strategies. The content herein represents our observations and analysis of market conditions and is intended for informational and educational purposes only. It does not constitute personalized investment advice or a recommendation for any specific security or strategy.
Major Market Indexes
Closing Price as of 04/07/2026
The Strong Tower Difference
Ask Yourself…
What do you own?
Why do you own what you own?
Do you know what you’re truly paying for your investment management and advice?
If you can’t answer these three questions, watch this video
Items of Interest
1st Quarter Index Returns:
Dow Jones -4.6%
S&P500 -3.6%
Nasdaq -7.1%
Takeaway:
Broad U.S. equities had their worst quarter since 2022.
Growth, particularly in the technology sector (NASDAQ) was hit hardest.
Blue-chip and value stocks (Dow) held up relatively better.
What Drove Q1 Weakness?
Interest Rates Repricing: Markets entered 2026 expecting multiple Fed rate cuts. Shift to “higher-for-longer” pressured valuations (especially tech).
Tech and AI Reset: “Magnificent 7” broadly declined. Investors questioned AI monetization vs. spending.
Geopolitical & Energy Volatility: Middle East tension and the US conflict with Iran, contributed to quickly rising oil prices. Added uncertainty with inflationary pressure.
Valuation & Positioning: Markets came into 2026 near all-time highs after strong 2025 gains. Profit-taking, along with, elevated equity exposure amplified downside movement.
Market Rotation (Important Theme):
Some notable shifts occurred.
Outperformers:
Industrials.
Energy.
Financials.
Defensive sectors.
Underperformers:
Mega-cap tech.
High-growth names.
YTD Path:
January–February: Mixed to slightly positive start.
February peak: Dow briefly +4% YTD and hit 50,000 milestone.
March: Sharp selloff across all indices drove negative Q1 returns.
Macro Backdrop:
Economy: Still resilient. Q1 earnings expected +10–13% YoY growth.
Inflation and the Fed: Inflation remaining “sticky “which is delaying rate cuts. Policy uncertainty supports increased volatility.
Bonds: Rising Treasury yields are typically a headwind for equities.
This does NOT appear to be a structural bear market…yet:
Earnings are still growing.
Economic data is still holding up.
More consistent with:
Normal market correction, not a structural downturn.
We are seeing a rotation into more traditional sectors like energy, financials, and industrials.
Periods like this are a healthy part of long-term investing.
What is notable:
Diversification struggled in Q1, which will usually favor a Relative Strength Investment Strategy.
Correlations rose across asset classes.
Meaning while correlations typically move in opposite directions, in this case, volatility and asset class correlations, moved together.
Bottom Line:
Markets are digesting: Higher rates. AI expectations. Geopolitical risk, not a collapse in fundamentals. Markets are adjusting, not breaking, and long-term fundamentals remain intact.
New Website!
Check out our new website!!
Current Strong Tower Model Allocation
Clients Only — Allocation as of 04/07/2026
Bottom Line:
52.00% of our model is currently in the top 4 Industry Groups.
91.00% of our model is currently in the top 8 Industry Groups.
About Us
At Strong Tower Wealth Management, we offer comprehensive wealth management services using a goal-focused and holistic approach that considers each client’s overall financial situation, including their family, circumstances, and objectives. Our services include investment management, insurance planning, and estate planning coordination, provided with an emphasis on clarity and transparency.
Not a client yet? We invite you to schedule an introductory assessment with Brett to discuss your financial goals and learn more about how we can support you.
Brett Lewis
Founder / Managing Director
Strong Tower Wealth Management
www.strongtowerwealthmanagement.com