- 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 This forecast may have more room for error than usual, since nearly 200 of the S&P 500 companies have withdrawn 2020 guidance.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.
Disclosure: This commentary reflects the opinions of Welch & Forbes based on information that we believe to be reliable. It is intended for informational purposes only, and not to suggest any specific performance or results, nor should it be considered investment, financial, tax or other professional advice. It is not an offer or solicitation.
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