Best Quarter Since 2020: Does the Rally Keep Running — or Snap Back?
What Q2 2026's 14.9% gain actually tells you about Q3 — and what it doesn't.
Q2 2026 just closed as the strongest quarter in six years. The S&P 500 gained 14.9%. The Nasdaq ripped 21.4%. NQ futures pushed above 30,000 for the first time.
Then, on the very next session, NQ dropped 1.5%.
Right on cue, the takes started flying. Half the internet says this is the top. The other half says buy the dip, momentum is on your side.
Both camps are guessing. Here's what the data actually says — and more importantly, what it means for how you trade Q3.
What Drove Q2's +14.9%?
Three forces combined to produce the best quarter since Q2 2020:
First, earnings growth accelerated hard. S&P 500 Q2 earnings came in at +23.1% — upgraded from 18.8% at the start of the quarter. Revenue growth rose from 9.5% to 12.3%. That's not hype. That's actual profit growth supporting the move.
Second, AI spending continued to dominate. Nvidia, Microsoft, Alphabet, Amazon, and Broadcom led the charge. In the most ...
