US equity markets are holding near record levels as the second-quarter earnings season gets underway, with the S&P 500 on track for its best quarterly performance in six years.
The index has climbed approximately 28% since the start of the year, driven by a broad-based rally that has extended beyond the mega-cap technology names that led the market earlier in the decade.
The momentum reflects a wave of investor confidence ahead of the first batch of corporate results.
Traders are positioning for a continuation of the bull market, betting that corporate fundamentals will support the elevated valuations.
The S&P 500 is poised to deliver its strongest return since 2020, a milestone that would underscore the resilience of the US equity market despite lingering macroeconomic uncertainties.
The rally has been fueled by sustained gains across technology and other growth sectors, which have benefited from the artificial intelligence investment cycle and strong consumer spending.