Shrugging off inflation concerns, trade tensions, and geopolitical risks, U.S. equities staged a dramatic recovery in Q2, with the S&P 500® rebounding by over 20% since the tariff-related tumult experienced in early April. Fueled by robust corporate earnings from Big Tech and recent optimism surrounding potential upcoming tax cuts, The 500™ reached another all-time closing high on the last trading day of the month, closing the quarter up 11%. Implied volatility remained low, with VIX® closing the quarter below the 17 handle.
The market rally was particularly notable for its breadth, which further extended toward mid and small caps. Although underperforming their large-cap peers, the S&P MidCap 400® and S&P SmallCap 600® were up 7% and 5%, respectively.
Marking a shift away from the defensive sentiment witnessed in Q1, Information Technology and Communication Services were the top-performing sectors, up 24% and 18%, respectively.dashboard-us-2025-06
