S&P 500 Posts Best Quarterly Performance Since 2020 as Growth Stocks Rally

Key Facts

The S&P 500 recorded its best quarterly performance since 2020, fueled by a robust recovery in the final weeks of the period. This rally was primarily driven by a resurgence in growth stocks as investors reacted positively to optimism surrounding peace negotiations in Iran and a string of strong corporate earnings reports. According to reports, the index successfully rebounded from a difficult start to the year, signaling a renewed appetite for risk-on assets.

This milestone comes amid resilient economic data, with the US GDP growth rate hitting 2.1% per market data, surpassing the forecasted 1.6%. Additionally, the Core PCE Price Index remained steady at 0.3% month-over-month, helping to alleviate immediate concerns regarding runaway inflation. This macroeconomic backdrop has provided a supportive environment for equities to outperform peers, even as central banks maintain a watchful stance.

Investors should now look toward upcoming catalysts, including the Michigan Consumer Sentiment index which recently printed at 49.5. Key speeches from Federal Reserve officials, specifically Williams and Kashkari on June 26, 2026, will be critical in determining if the current momentum can be sustained. Market participants will be searching for clues on interest rate trajectories that could impact growth valuations in the coming months.