American indices end the quarter in a very strong mood, driven by economic resilience and the unceasing boom in the technology sector. Despite local geopolitical turmoil, the "buying the dips" strategy remains the dominant approach among investors.
Key information from today's session and the last quarter
- Best quarter in years: S&P 500 ends its best quarter in six years. The three-month price increase expanded the market value of this index by an impressive 8 trillion dollars. Investor optimism is driven by a strong labor market and good consumer sentiment.
- Tech sector and AI on the offensive: Nasdaq 100 (US100) gains 1.6%. Meanwhile, the semiconductor manufacturers index (Philadelphia Semiconductor Index) is heading for its best quarter in history, supported by strong fundamentals and the structural trend of artificial intelligence (AI) development.
- June Swoon: Despite the great quarter, June itself brought a temporary deterioration in statistics: the S&P 500 index lost about 0.8% this month, but it is still a reduction of the drop from almost -5%. This is due to capital rotation towards smaller companies (small caps) and natural profit-taking after a massive, over 5% index growth in May.
- Geopolitics and falling oil prices: Markets are closely watching peace talks between the US and Iran being held in Qatar. Hopes for a permanent agreement and increased flows through the Strait of Hormuz have caused crude oil to head for its largest quarterly decline since the pandemic.
US100 gains strongly for the second session in a row and is only 1.5% away from historical highs. Source: xStation5
US500 remains in a slight loss in June. Source: xStation5
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