Market Decode™: What’s behind U.S. equity resilience?

U.S. EQUITIES HAVE FACED A STEADY STREAM of challenges over the past year, from trade disruptions and policy uncertainty to rapid technological change. Yet despite a brief movement into correction territory — a decline of between 10% and 20% from a recent peak — in March for two of the three major stock indexes¹, driven by concerns over the economic effects of the Middle East conflict, the market has held up. By mid-April, most of those losses had been recouped. That resilience reflects an ability to absorb shocks, adjust business models and recalibrate expectations rather than break under pressure.

In the video above, Ariana Chiu, investment strategist for the Chief Investment Office for Merrill and Bank of America Private Bank, explains why adaptability is a key reason that U.S. equities have remained resilient over the long term. “Time and again, companies have shown they can absorb stress, adjust quickly and keep moving forward,” says Chiu.  She points to shifts in supply chains, cost management and innovation as drivers of the market’s recent sturdiness, even as risks persist.

“That resilience underscores the importance of holding on during times of volatility and not losing sight of your investment goals,” Chiu adds. “Investors who pulled out of the markets last April missed out on gains when they bounced back in the following months.” For more on the importance of staying the course, watch “Long-term investing: Core principles every investor should know.”

¹The Nasdaq Composite entered correction territory on March 26–27, 2026, followed by the Dow Jones Industrial Average, which confirmed a correction on March 27, 2026.

The opinions expressed are as of 4/14/2026 and are subject to change.

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The Chief Investment Office (CIO) provides thought leadership on wealth management, investment strategy and global markets; portfolio management solutions; due diligence; and solutions oversight and data analytics. CIO viewpoints are developed for Bank of America Private Bank, a division of Bank of America, N.A., (“Bank of America”) and Merrill Lynch, Pierce, Fenner & Smith Incorporated (“MLPF&S” or “Merrill”), a registered broker-dealer, registered investment adviser and a wholly owned subsidiary of Bank of America Corporation (“BofA Corp.”).