S&P 500 Climbs at End of Best Quarter Since 2020: Markets Wrap

(Bloomberg) — The best quarter in six years for stocks ended on a positive note, with chipmakers extending their surge from war-driven lows and signs of economic resilience fueling optimism about corporate earnings.

A rally that’s added more than $8 trillion to the S&P 500’s value in three months powered ahead as data showed strength in both jobs and consumer sentiment. In a tech-led advance, the Nasdaq 100 climbed 1.7% while a gauge of semiconductor firms notched the best quarter ever. Treasuries fell. Oil declined on hopes for a permanent deal to end the Iran war.

A fresh batch of economic data continued to underscore growing momentum. Though a surge in prices during the Middle East conflict has depressed consumer sentiment and eaten into wage gains, it’s had less of an impact on demand for workers as spending has remained strong.

Today marks the end of what’s turned out to be a “monster” first half on Wall Street despite the rocky geopolitical issues and choppy trading that’s been prevalent across the board during the period, according to JJ Kinahan at Cboe Global Markets.

“The markets have proven to be the ultimate grinder as they keep crushing it despite a lot of hand-wringing that has gone along with this incredible rally that has endured deep selloffs, the Iran war and a number of other outside influences,” he said.

For all the swings during the first half of 2026, buying the dip has become the go-to strategy for retail investors. The group has bought almost three-and-a-half times the average daily amount on days the S&P 500 has dropped, according to data compiled by Scott Rubner at Citadel Securities.

“Despite some twists and turns, the path of least resistance for stocks broadly remained up and to the right for much of the last three months,” said Jeff Buchbinder at LPL Financial. “While stock market enthusiasm has increased, we do not believe it has crossed the threshold into outright irrational exuberance.”

Some sentiment surveys are stretched, but others remain near long-term averages while positioning has begun to moderate, he added. Meantime, Buchbinder noted that other indicators – including record margin debt and highly overbought conditions in key leadership groups like semiconductors – point to a market with an overly optimistic outlook.

“Strong fundamentals and powerful structural themes such as AI can justify elevated valuations for a while, but they do not eliminate the typical ups and downs,” he said. “Rather than signaling the end of the bull market, current conditions appear more consistent with a mature bull market that may be due for a pause. We remain constructive on equities.”

A rotation into cyclical corners could have legs especially if oil prices keep heading toward levels prior to the war and the economy remains resilient, according to Mona Mahajan at Edward Jones. She would recommend both large-cap stocks, which offer exposure to the AI story, and mid-cap shares, which could continue to do well if the broadening theme delivers.

Corporate Highlights:

Anthropic PBC is releasing new software aimed at helping scientists automate research, in the hopes of reducing some of the tedious aspects of their work. The Supreme Court agreed to hear an appeal by Apple Inc. regarding a contempt ruling in its long-running antitrust battle with Fortnite-maker Epic Games Inc. Visa Inc., Stripe Inc. and Bank of New York Mellon Corp. are among dozens of financial firms linking up to introduce a stablecoin, part of a strategy to broaden the appeal of the digital money-movement technology. The Food and Drug Administration authorized Philip Morris International Inc. to market its Zyn nicotine pouches as less harmful than cigarettes, the first time the category has received the distinction. Air Products and Chemicals Inc. is scrapping plans to develop a multibillion-dollar project in Louisiana that would have produced of hydrogen and captured carbon dioxide. Some of the main moves in markets:

Stocks

The S&P 500 rose 0.8% as of 4 p.m. New York time The Nasdaq 100 rose 1.7% The Dow Jones Industrial Average rose 0.3% The MSCI World Index rose 0.7% Currencies

The Bloomberg Dollar Spot Index was little changed The euro was little changed at $1.1427 The British pound was little changed at $1.3265 The Japanese yen fell 0.4% to 162.59 per dollar Cryptocurrencies

Bitcoin fell 2.5% to $58,700.13 Ether fell 2.4% to $1,577.4 Bonds

The yield on 10-year Treasuries advanced seven basis points to 4.45% Germany’s 10-year yield was little changed at 2.86% Britain’s 10-year yield advanced four basis points to 4.76% Commodities

West Texas Intermediate crude fell 0.9% to $70.09 a barrel Spot gold was little changed ©2026 Bloomberg L.P.