S&P 500, Dow, and Nasdaq surge in H1 2026, led by strong Q2 performance and easing geopolitical tensions.
The S&P 500, Dow Jones Industrial Average, and Nasdaq recorded their strongest first-half gains since 2021, rising 8%, 8.6%, and 11.1%, respectively. The Dow closed at a record high Monday, with futures signaling further gains Tuesday morning.
Quarterly returns of nearly 14% for the S&P 500 and 19.6% for the Nasdaq would mark their best three-month performances since Q2 2020. The Dow’s 12.6% quarterly gain would be its strongest since Q4 2022. Gains followed early-year volatility tied to energy price swings and AI investment concerns.
Markets rallied Monday after the U.S. and Iran agreed to cease hostilities and reopen the Strait of Hormuz, boosting sentiment. The S&P 500 and Nasdaq closed up 1.18% and 2.07%, respectively.