In the second quarter of 2026, stock funds saw a significant rally, rising 17.1%, marked by notable events such as the SpaceX IPO, fluctuations in oil prices, and a new Fed chair's policies. Investor confidence, particularly in technology stocks associated with artificial intelligence, helped fuel this success, leading to the S&P 500 and Nasdaq composite achieving their best quarterly results since 2020, reaching record highs. The Dow also closed at a record for the month.

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https://www.wsj.com/finance/investing/stocks-q2-2026-look-back-4b7f8c7d

Stock Funds Rallied 17.1% in a Quarter That Made Investors’ Heads Spin

An IPO rocket and a new Fed gave investors plenty to think about. Plus: Our latest Financial Flashback, to the options-dating scandal 20 years ago.

William Power

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It was an eventful second quarter for stock-fund investors, including the SpaceX initial public offering, an oil shock, an Iran peace rally at one point, and the first Fed-policy meeting under the central bank’s new chairman.

But through it all, it was investors’ faith in tech stocks—those tied to artificial intelligence, in particular—that kept the market humming. In the end, the S&P 500 and Nasdaq composite posted their best quarters since 2020, hitting record highs, and the Dow closed the month at a record as well.

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Stock Funds Rallied 17.1% in a Quarter That Made Investors’ Heads Spin

Stock Funds Rallied 17.1% in a Quarter That Made Investors’ Heads Spin

An IPO rocket and a new Fed gave investors plenty to think about. Plus: Our latest Financial Flashback, to the options-dating scandal 20 years ago.

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