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The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
U.S. stocks capped their strongest quarterly rally in over five years, reflecting sustained investor optimism amid easing inflation expectations and resilient economic data. The S&P 500 and Nasdaq rose 0.79% and 1.52% respectively on the final trading day of the quarter, according to the Wall Street Journal, securing their best quarterly performance since 2020.
The quarterly rally was supported by stronger-than-expected U.S. GDP growth of 2.1% in the first quarter (revised up from a 1.6% forecast), while core PCE inflation held steady at 0.3% monthly, according to recent Commerce Department data. Investors also welcomed initial jobless claims falling to 215,000, signaling a robust labor market.
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Sign InLooking ahead, investors will watch for the next Fed meeting minutes and July jobs data to gauge whether the rally can sustain. The strong quarterly close sets a positive tone for Q3, but markets remain sensitive to any shift in inflation or monetary policy signals.
Update: These gains come amid rising geopolitical risks tied to Iran war fallout, which could pressure energy prices and fuel volatility in chip stocks. Investors are also eyeing the upcoming SpaceX IPO, expected to be the largest in Wall Street history, which could divert capital flows away from major indices in the near term.