The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
Despite the ongoing war in the Middle East, US markets posted a standout quarterly performance highlighting investor confidence in economic fundamentals. The S&P 500 and Nasdaq finished Q2 2026 with their biggest quarterly gains since 2020, according to Reuters data, driven by optimism over economic growth and corporate earnings that outweighed the Iran conflict.
Fresh economic data reinforced the rally, with the final reading of Q1 GDP showing 2.1% growth (per market data), beating forecasts, while personal spending rose 0.7% in May, signaling strong consumer demand. The core PCE price index remained steady at 0.3% month-on-month, suggesting inflation pressures are contained.
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Sign InWith Q2's strong performance in the books, focus now shifts to the upcoming Q3 earnings season and the Federal Reserve's policy path. The key question is whether markets can sustain momentum amid lingering geopolitical risks and any shift in interest rate expectations.