The second quarter of 2026 delivered a sharp reversal from the year’s difficult start. The S&P 500 gained 15.2%, while U.S. small-cap stocks rose 19.7%. Technology led the recovery, supported by strong semiconductor earnings and renewed confidence in AI investment. The rally left the S&P 500 up 10.2% for the first half, underscoring how quickly market leadership and investor sentiment can change.
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