Updated
Updated · Business Insider · Jul 1
S&P 500 Jumps 15% in Q2 as SOX Soars 88% on Iran De-Escalation
Updated
Updated · Business Insider · Jul 1

S&P 500 Jumps 15% in Q2 as SOX Soars 88% on Iran De-Escalation

3 articles · Updated · Business Insider · Jul 1

Summary

  • A late-March market bottom turned into a historic second quarter, with the S&P 500 up 15% and the Nasdaq 100 up 28% after investors priced in an apparent US-Iran de-escalation.
  • An 88% record surge in the Philadelphia Semiconductor Index powered much of the rally, led by outsized gains in Micron, Intel, Marvell and AMD as traders embraced AI spending.
  • The Russell 2000 climbed 21% for its best quarter since 2020, and its strongest first half since 1991, signaling broader participation beyond mega-cap tech.
  • Falling oil prices hit energy stocks—the sector's worst quarter since 2020—but also eased inflation worries and helped shift focus back to earnings growth.
  • June still exposed cracks in software and AI hyperscalers, and investors now face a key July test from mega-cap tech earnings and Fed Chair Kevin Warsh's rate path.

Insights

With tech stocks faltering, is the AI-fueled market rally facing a major reality check?
As the Iran conflict disrupts global oil, what is the breaking point for the world economy?