S&P 500 Caps Best Quarter Since 2020 as AI Rally Drives Stocks

The S&P 500 advanced 0.8%, capping its strongest quarterly performance since 2020. The index added more than $8 trillion in market value during the period.

• The Nasdaq 100 jumped 1.7%, led by chipmakers extending their AI-fueled rally. The Philadelphia Semiconductor Index posted its best quarter on record.
• Robust U.S. jobs and consumer data reinforced confidence in economic resilience and corporate earnings.
• Oil prices declined on optimism that a permanent U.S.-Iran peace deal could reduce geopolitical risks.
• Treasury yields rose as markets continued to price in a resilient U.S. economy.

Analysts note that AI momentum and strong fundamentals continue to support equities, though some warn of a potential short-term pause. Retail investors have maintained a "buy the dip" stance, reinforcing upward momentum.