The S&P 500 and Nasdaq Composite closed the second quarter with their largest percentage gains since 2020, defying the backdrop of an ongoing military conflict between the US and Iran.
Investors maintained a bullish stance on economic growth and corporate profitability, prioritizing fundamental strength over geopolitical risk in the final trading days of the quarter.
The S&P 500 rose 0.5% on Friday alone, capping a session marked by investor confidence that the geopolitical shock would not derail the broader economic expansion.
The rally was bolstered by a significant retreat in energy costs.
Oil prices, which had spiked during the initial escalation of the conflict, have since returned to pre-war levels.
This normalization in input costs provided relief to corporate margins and consumer spending power, fueling the late-quarter surge.
The S&P 500 rose 0.5% on Friday alone, capping a session marked by investor confidence that the geopolitical shock would not derail the broader economic expansion.