S&P 500 records strongest quarter since 2020, AI-led

U.S. stock markets concluded the first half of 2026 with their strongest quarterly performance in six years, driven by technology and artificial intelligence stocks alongside optimism over easing geopolitical tensions. The S&P 500 rose 14.9 percent for the quarter ending June 30, marking its best performance since the second quarter of 2020. The Nasdaq Composite also posted significant gains.

The rally, which lifted major indices to one of their strongest six-month stretches in recent years, was initially powered by a group of large technology companies often referred to as the "Magnificent Seven": Amazon, Apple, Microsoft, Alphabet, Meta, Tesla, and Nvidia. From the end of March through May, this group rose almost 30 percent. Semiconductor manufacturers, cloud infrastructure providers, and software firms contributed substantially to the market's advance.

Investors continued buying despite ongoing questions about inflation and interest rates, demonstrating sustained confidence in AI-driven growth. The gains were also supported by a strong round of corporate earnings and hopes for an end to the military conflict between the United States and Iran.