US stocks close out best quarter since 2020 with mixed session; S&P 500 and Nasdaq poised to lock in double-digit gains on tech strength.
The Nasdaq 100 is on pace for its best quarter since 2020, benefiting from outsized gains in mega-cap technology stocks. The index saw its daily performance lag slightly as some profit-taking emerged.
The Nasdaq 100 surged over 18% in the quarter, led by heavyweights Nvidia and Microsoft, marking its strongest quarter since 2020.
While momentum remains strong, valuations are elevated and any negative shift in earnings or rate expectations could trigger a correction.
The S&P 500 is on track for its best quarter since 2020, with gains exceeding 15% as of the final session. A mixed daily performance reflects profit-taking but the index remains near record territory.
The S&P 500 is up more than 15% for the quarter, its best three-month performance since 2020.
Strong corporate earnings, especially in technology, and optimism around AI have fueled the advance. The index also benefited from a resilient US economy.
The QQQ ETF, which tracks the Nasdaq 100, is set to post its best quarterly gain since 2020 as underlying tech stocks surge. The ETF's daily price action was mixed, mirroring the index.
QQQ is up over 18% for the quarter, tracking the Nasdaq 100's gains led by tech mega-caps.
While the ETF has had an exceptional run, the concentration risk and high valuations suggest a prudent approach, considering potential volatility ahead.
US equity indices were mixed on the final day of the quarter but remain on track for their strongest three-month performance since 2020. The S&P 500 added 0.2% while the Nasdaq slipped 0.1%, with technology shares providing the bulk of gains. For the quarter, the S&P 500 has gained over 15%, driven by AI optimism and resilient earnings.
A resilient US economy, better-than-expected corporate earnings, and enthusiasm around artificial intelligence technology fueled a broad-based rally, pushing the S&P 500 and Nasdaq to their best quarter since 2020.
Energy and financials lagged as oil prices declined and the interest rate outlook remained uncertain, while technology and consumer discretionary sectors outperformed.