U.S. Stock Indices Record Largest Quarterly Gains Since 2020

Major U.S. stock indices concluded the second quarter of 2026 with historic gains, marking the most successful period for the S&P 500 and Nasdaq since 2020. The Nasdaq surged 21.4% and the S&P 500 rose 14.9%, propelled by an artificial intelligence boom that sent semiconductor stocks soaring. Notably, Micron Technology climbed 242% and Advanced Micro Devices jumped 186%, while Broadcom Inc and Nvidia also saw significant gains. The Dow Jones Industrial Average recorded its best quarter since 2022, increasing approximately 13% and reaching a record closing high on June 30.

These gains occurred despite a four-month conflict between the United States and Iran. While a memorandum of understanding signed on June 17 for a ceasefire helped stabilize markets and return oil prices to pre-war levels, recent exchanges of fire and the cancellation of high-level meetings in Doha have strained the agreement.

Market optimism is tempered by inflation concerns. Kevin Warsh, Chairman of the Federal Reserve, highlighted a 4.1% core inflation rate, leading traders to anticipate at least one interest rate hike by the end of 2026. This inflationary pressure contributed to a sharp decline in precious metals, with gold falling 13% and silver dropping 20%.