Second Quarter Highlights
- The +15.2% gain over the second quarter of 2026 marked the strongest quarterly performance for the S&P 500 in six years. This is an impressive feat, provided the index was down -1% in the month of June. Results from the second quarter have brought the year-to-date figure to +10.2%.
- One of the more encouraging themes underlying this year’s performance has been the broadening out of returns, which is refreshingly different than outsized gains being attributable to only a handful of stocks that had become seemingly standard since late 2022.
- The inflation rate shifted upward as higher energy prices endured for most of the quarter. In May, the year-over-year Consumer Price Index (CPI) and Core CPI increased 4.2% and 2.9%, respectively.
- In June, unemployment declined to 4.2% while monthly non-farm payrolls continued to drop. The disconnect between joblessness and payroll growth is attributable to a declining workforce, which has shrunk by 1.7 million this year. Thus far, weaker employment conditions have not negatively impacted the economy.