Markets entered 2026 on relatively stable footing, but the first quarter proved more uneven beneath the surface than headline index performance suggested. The S&P 500 declined modestly, marking its first negative quarter after three consecutive gains, while the Nasdaq fell more sharply.
In contrast, smaller-cap stocks held up better, with the Russell 2000 finishing slightly higher and the equal-weighted S&P 500 posting a small gain, reflecting a less concentrated market environment than investors have grown accustomed to in recent years.
Beneath these index-level moves, leadership shifted meaningfully. Some of the largest technology and software companies, which had driven a significant share of market returns in prior periods, came under pressure during the quarter.
Join Us May 5th for a Live Market Update
One of the investment world’s classic axioms is that “crisis equals opportunity.”
Please join for our Spring 2026 Market Update Webinar as we review key market developments from the first quarter, explore the forces currently influencing investor sentiment and discuss portfolio positioning as the year unfolds.
Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Withum Wealth Management (“WWM”), or any non-investment related content, made reference to directly or indirectly in this blog will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this blog serves as the receipt of, or as a substitute for, personalized investment advice from WWM. WWM does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to WWM’s web site or blog or incorporated herein and takes no responsibility for any such content. All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. WWM is neither a law firm nor a certified public accounting firm and no portion of the blog content should be construed as legal or accounting advice. A copy of the WWM’s current written disclosure Brochure discussing our advisory services and fees is available for review upon request or at www.withumwealth.com. If you are a WWM client, please contact us in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing, evaluating, or revising our previous recommendations and/or services, or if you would like to impose, add, or to modify any reasonable restrictions to our investment advisory services. Unless, and until, you notify us, in writing, to the contrary, we shall continue to provide services as we do currently. Please also remember to advise us if you have not been receiving account statements (at least quarterly) from the account custodian.
Downloads
Spring 2026 Investment Commentary
Markets entered 2026 on relatively stable footing, but the first quarter proved more uneven beneath the surface than headline index performance suggested. The S&P 500 declined modestly, marking its first negative quarter after three consecutive gains, while the Nasdaq fell more sharply.
