Market Summary - Q2 2026

Overview

The American indices concluded the second quarter of 2026 on a high note, buoyed by economic resilience and a robust technology sector. Despite facing local geopolitical challenges, the prevailing strategy among investors has been to "buy the dips."

Key Highlights

• S&P 500 Performance: The S&P 500 marked its best quarter in six years, with a remarkable three-month price increase that added approximately $8 trillion to its market value. This surge is attributed to a strong labor market and positive consumer sentiment.
• Nasdaq 100 Gains: The Nasdaq 100 (US100) rose by 1.6%, reflecting the ongoing strength in the technology sector, particularly in artificial intelligence (AI) and semiconductor manufacturing.
• June Performance: Despite the overall strong quarter, June saw a slight decline, with the S&P 500 dropping about 0.8%. This was a recovery from a more significant drop of nearly 5% earlier in the month, driven by capital rotation towards smaller companies and profit-taking after a substantial rise in May.
• Geopolitical Factors: Markets are closely monitoring peace negotiations between the US and Iran, which are taking place in Qatar. Optimism surrounding a potential agreement has contributed to a significant decline in crude oil prices, marking the largest quarterly drop since the pandemic.

Market Outlook

The US100 index has shown strong gains for two consecutive sessions and is now just 1.5% shy of its historical highs. The semiconductor sector, in particular, is on track for its best quarter ever, driven by solid fundamentals and the ongoing trend of AI development.