Major U.S. stock indices extended their spring rally this week as first-quarter earnings reports exceeded analyst expectations across technology, healthcare, and consumer discretionary sectors. The S&P 500 is now up 11 percent year-to-date.
Fund managers are cautiously optimistic but note that elevated valuations leave little margin for disappointment in upcoming reports. Defensive positioning in utilities and consumer staples suggests some investors are hedging against a potential pullback.
Retail investors continue to pour money into broad-market index funds, with April inflows on track to match the record levels set in January. Dollar-cost averaging remains the preferred strategy among financial advisors.
