Market Update
.
In a recent commentary, LPL Research explores whether the U.S. is truly entering an industrial rebirth. Many public figures have pushed to bring manufacturing back to the U.S. after decades of globalization. The research shows “manufacturing employment in the U.S. as a share of total employment has steadily decreased, from over 20% in 1980 to below 8% in 2025.” The commentary notes there is a genuine supply chain shift happening. However, data shows a more selective realignment focused on strategic high-tech sectors rather than an entire reversal of globalization in manufacturing.
The report highlights these nuances:
- Supply Chain Resilience: Following COVID-19 disruptions, companies are prioritizing "reshoring" or "nearshoring" (moving production to Mexico or Vietnam) to reduce over-reliance on China. Cross-border commerce still remains highly connected.
- Bipartisan Policy Support: Significant legislation, including the CHIPS and Science Act and the Inflation Reduction Act, has catalyzed a surge in private manufacturing construction spending, which hit roughly $200 billion by early 2026.
- Employment vs. Production: While manufacturing capacity has expanded for 51 consecutive months, this may not lead to a massive surge in jobs due to increased reliance on robotics and automation. The ‘renaissance’ is in spending, not jobs.
“Nearshoring improves resilience relative to China’s concentration, but it is not the same as a U.S. manufacturing renaissance.”
.
Manufacturing Capacity in the U.S. Has Expanded for 51 Months Straight
U.S. manufacturing capacity and production, seasonally adjusted index (2017 = 100), Dec 2021 – Mar 2026
Source: LPL Research, Bloomberg, U.S. Federal Reserve 04/21/26
Disclosures: Past performance is no guarantee of future results.
Read the full article HERE.
.
Market Recap
The U.S. stock market experienced a historic and exceptionally strong rebound in April 2026, making a major comeback from late March lows to cross into new record territory.
- The S&P 500 was up 10.42% for the month and reached a new all-time high of 7,209.01.
- The Nasdaq Composite Index posted a return of 15.29% for April.
- The Dow Jones Industrial Average (DJIA) rose 7.14% over the course of the month.
As always, if you have questions about how the economy may impact your investments, please don’t hesitate to reach out to us.
.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly. The Standard & Poor’s 500 Index is a capitalization weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries. The NASDAQ Composite Index measures all NASDAQ domestic and non-U.S. based common stocks listed on The NASDAQ Stock Market. The market value, the last sale price multiplied by total shares outstanding, is calculated throughout the trading day, and is related to the total value of the Index. The Dow Jones Industrial Average is comprised of 30 stocks that are major factors in their industries and widely held by individuals and institutional investors.
Sources:
https://www.morningstar.com/indexes/spi/spx/performance
https://www.morningstar.com/indexes/dji/!dji/performance