The US stock market experienced its strongest performance in the second quarter of this year, marking the most notable increase in the past seven years. According to data from investment firm Finam, the key S&P 500 index, which includes shares of the 500 largest corporations in the United States, soared by 14.5% from April to June, representing the largest quarterly gain since 2020. This impressive result allowed the market to completely recover from the spring decline and positioned it for a series of new historical highs.
In March, stock exchanges faced considerable pressure due to geopolitical uncertainty stemming from the Iranian conflict and rising commodity prices. However, the subsequent explosive growth in corporate profits, particularly in the artificial intelligence sector, dramatically reversed the downward trend. Within just over a month, the S&P 500 jumped by 11%, prompting Bloomberg analysts in early May to report a surge in investor sentiment to "manic" levels across three of six tracked indicators.
Although the pace of the bullish rally predictably slowed thereafter, the market managed to avoid a significant pullback. By the end of the quarter, however, investors exhibited renewed caution. Amid early signs of diplomatic resolution regarding Iran, concerns about tightening monetary policy came to the forefront. Due to a local spike in inflation, traders began actively pricing in potential hikes in the Federal Reserve’s benchmark interest rate.
