- U.S. stocks advanced in June as progress on reopening, payroll gains, and assurances that the Fed would keep rates low for the foreseeable future fueled investor optimism. For the month, the S&P 500 was up 2.0%, the Nasdaq rose 6.1%, and the Dow gained 1.8%.
- The New York Times dubbed the stock market’s Q2 performance “an epic reversal of fortune.” The S&P rose 20.5%, its strongest quarterly showing since the fourth quarter of 1998, following a loss of -19.6% in Q1. The market has not seen a quarter-to-quarter swing of this magnitude since 1932.
- Companies are set to report Q2 earnings in the coming weeks, with analysts expecting a -44% year-over-year decline in the quarter. This forecast may have more room for error than usual, since nearly 200 of the S&P 500 companies have withdrawn 2020 guidance. Analysts currently anticipate an earnings decline of -22% for the entire year.
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