State Street SPDR S&P 500 ETF Trust SPY added about 9.4% past month. State Street SPDR Dow Jones Industrial Avg ETF Trust DIA gained about 6%, and the Nasdaq-100-heavy ETF and Invesco QQQ Trust, Series 1 QQQ advanced about 14.6%.
The Iran war, the resultant rally in oil prices, tariff tensions, chances of renewed inflation and the resultant less-dovish Fed stance have shaped the markets in April. Let’s delve a little deeper.
Moderate U.S. Economic Growth
The U.S. economy expanded at an annualized rate of 2.0% in Q1 2026, up from 0.5% in the previous quarter but below market expectations of 2.3%, according to a preliminary estimate, as quoted on tradingeconomics. Government spending grew 4.4%, recovering from a 5.6% contraction in Q4 of 2025, as activity resumed following the end of the government shutdown.
Rise in U.S. Inflation
The annual inflation rate in the United States rose to 3.3% in March 2026, marking the highest level since May 2024 and a sharp increase from 2.4% in both February and January, as quoted on tradingeconomics. On a monthly basis, consumer prices rose 0.9%, the largest increase since June 2022, following a 0.3% gain in February.
Massive Oil Rally
Oil prices remained elevated after Donald Trump signaled plans to maintain a prolonged naval blockade on Iran. Negotiations have stalled, with Tehran refusing to reopen the critical Strait of Hormuz until the blockade is lifted, disrupting regional oil flows and heightening global supply concerns. United States Oil Fund LP USO has gained 18.4% over the past month (as of April 30, 2026).
Upbeat Earnings Picture
The Q1 earnings season is shaping up with solid momentum, as companies not only beat consensus estimates but also signal resilience in the economy despite elevated energy costs and geopolitical risks, per the Earnings Trends issued on April 22, 2026. Strength has been particularly notable on the revenue side, both in growth rates and beat percentages (read: Forget Geopolitics: Bet on Earnings Growth & Invest in These Sector ETFs).
Looking ahead, Q2 earnings are projected to grow 19.8% year over year on 9.2% higher revenues, up from 17.1% projected growth at the end of March (read: Forget Geopolitics: Bet on Earnings Growth & Invest in These Sector ETFs).
ETF Winners in Focus
Against this backdrop, below we highlight a few winning ETFs of the month of April.
Global X Hydrogen ETF HYDR – Up 55.3% past month
Optimism surrounding a potential long-term truce in the Middle East has lifted U.S. markets. However, the current energy crisis amid the Iran war has led several countries to opt for alternative energy sources. Hydrogen is one such option. Additionally, the expansion of the AI industry has increased the demand for clean and sustainable energy, with hydrogen emerging as a potential fuel.