S&P 500 Historic Gains and Streak

What happened: The S&P 500 just wrapped up its best quarter since 2020, gaining 14% and 15% in Q1 2026, respectively. This marks the index's fourth consecutive year of double-digit gains. The Nasdaq-100 outperformed, rising 20% in the same period. Historically, following such strong quarters, the S&P 500 has returned an average of 13% and 28% in the next year, respectively.

Market impact: Tech and semiconductor stocks, which led the rally, are likely to remain in focus. Quality stocks with strong fundamentals may continue to outperform. The rally has been broad-based, with 11 out of 12 sectors in the S&P 500 posting gains in Q1 2026.

What to watch next: The next earnings season will be crucial, with key reports from tech giants like Apple (Q3 2026, July 27) and Microsoft (Q4 2026, July 26). Additionally, the Federal Reserve's next policy meeting on July 26 will provide insights into the central bank's stance on interest rates and inflation, which could significantly impact market sentiment.