Finance
The Stock Market Just Did Something Last Seen in 2020. It Signals a Big Move in the Next Year.
The Nasdaq Composite surged 21% in the second quarter of 2026, marking its strongest quarterly performance since Q2 2020.
Key takeaways
- The Nasdaq Composite skyrocketed 21% in Q2 2026 to achieve its best quarterly performance since Q2 2020.
- Following quarterly gains of at least 15%, the Nasdaq has returned an average of 22% during the next 12 months.
- U.S. corporate profits hit a record high in the second quarter as investors brushed aside economic uncertainty tied to the Iran war.
The Nasdaq Composite surged 21% in the second quarter of 2026, marking its strongest quarterly performance since Q2 2020. This growth outpaced the S&P 500's 15% gain and the Dow Jones Industrial Average's 13% advance, driven largely by technology companies involved in artificial intelligence hardware. Historically, when the Nasdaq has advanced by at least 15% in a quarter, it has gone on to return an average of 22% over the subsequent 12 months.
By the numbers
- +21%
- Nasdaq Composite gain in Q2 2026
- +15%
- S&P 500 gain in Q2 2026
- +13%
- Dow Jones Industrial Average gain in Q2 2026
- 61%
- Technology sector share of Nasdaq by market value
- 26,214
- Nasdaq Composite closing level on June 30
How it unfolded
- Artificial intelligence boom began in earnest
- Nasdaq Composite closed second quarter at 26,214
- Nasdaq Composite traded at 25,832
- Projected Nasdaq level of 31,981 based on historical averages
Why this matters
-
The Nasdaq will climb 22% to hit 31,981 by July 2027 if its performance matches the historical average.
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Common questions
- What happened with Nasdaq Composite?
- The Nasdaq Composite skyrocketed 21% in Q2 2026 to achieve its best quarterly performance since Q2 2020.
- Where can I read the original report?
- Read the full report at motley_fool.
