The S&P 500 and Nasdaq finished Q2 2026 with their biggest quarterly gains since 2020, as investor optimism about economic and earnings growth persisted despite the Middle East conflict. The S&P 500 recorded its best quarterly performance since 2020 following a recovery in recent weeks. Investors returned to growth stocks amid optimism regarding peace negotiations in Iran and strong corporate earnings. The S&P 500 index finished the week up 1.7%, marking its best weekly performance in two months.
