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S&P 500 caps strongest quarter since 2020: Here's what drove the rally

source: news (news:seeking-alpha)published 2026-07-01 09:00ingested 2026-07-01 09:43

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S&P 500 caps strongest quarter since 2020: Here's what drove the rally

Jul 01, 2026, 5:00 AM ETS&P 500 Index (SP500), SH, SPY, VOO, XLE, XLK, XLF, IVV, XLU, SPX, XLP, XLY, XLB, RSP, SDS, SSO, XLC, UPRO, SPXU, MAGSAAPL, XLV, XLI, CTSH, GOOG, AMZN, MSFT, ACN, AMD, INTC, STX, WDC, NVDA, FLEX, MRVL, MU, INTU, BSX, CSGP, HUM, TSLA, LYB, CHTR, META, ZTS, LDOS, GOOGL, XLRE, DELL, SNDKBy : Preeti Singh, SA News Editor

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The S&P 500 (SP500) capped off its strongest quarter since 2020, rising ~0.8% on Tuesday to close at 7,499.36.

The benchmark index gained nearly 15% in the second quarter and is now up nearly 10% year to date. Despite a historic oil shock, escalating

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Quick Insights

Optimism in artificial intelligence, strong semiconductor and technology stock performance, and resilience despite oil shocks, geopolitical tensions, and interest rate concerns drove the S&P 500's strong gains.

The Technology sector was the top performer driven by AI optimism; companies tied to AI infrastructure, like Sandisk and Micron, had the highest gains, while mega-cap tech stocks also saw significant returns.

Historically, when S&P 500 is up 5-10% midyear, the rest of the year tends to perform well and major declines are rare, according to market strategists.

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