Stocks ended a volatile first quarter down, posting their worst first-quarter performance since 2022.¹

Is this a natural pullback from frothy market highs or a sign of more turbulence ahead?

Let's take a look at the past quarter and talk through what might lie ahead.

As we enter the second quarter of 2026, markets continue to grapple with volatility, driven by geopolitical worries, energy concerns, and shifts in market confidence.

Even long-term investors who know how to stay patient with normal market swings might find this to be an unnerving time.

After multiple years of strong markets, 2026 is testing whether investors can maintain discipline when markets get volatile.

Here's the truth: pullbacks are a normal part of investing. History shows that markets experience declines of 15% or more fairly regularly—yet still finish positive in most years.⁵

In 39 of the last 50 market drawdowns, markets achieved a new high within five months. While the past can't predict the future, this recent decline (while uncomfortable) remains well within historical norms.

If markets "feel" different right now, you might be noticing that this decline has been slower and steadier than selloffs that rebound quickly. While we've seen some recovery rallies along the way, uncertainty remains high.²

But there are reasons for optimism as well. Behind the volatility, company fundamentals appear healthy.

Corporate earnings are still growing at double-digit rates, and about half of firms are expecting to report positive Q1 results.⁶ The labor market, while showing some signs of cooling, remains relatively stable.⁴ Markets may be adjusting to new information, but the underlying business environment hasn't deteriorated dramatically.

Our outlook: stay patient and cautious.

Uncertainty can feel uncomfortable, but your overall strategy is designed to weather periods like these. Rather than reacting to headlines, we're remaining committed to the overall strategy and watching the data carefully.

Questions about navigating this latest period of volatility? Let's schedule some time to talk.

The S&P 500 is a stock index considered to be representative of the U.S. stock market in general. The NASDAQ Composite Index is an unmanaged composite index of over 2,500 common equities listed on the NASDAQ stock exchange. The Dow Jones Industrial Average is a price-weighted index that tracks 30 large, publicly traded American companies.

All index returns exclude reinvested dividends and interest. Indices are unmanaged and cannot be invested into directly.