Climbing Higher like a Rocket!
The markets posted their strongest quarterly returns since 2020, putting behind us a volatile first quarter. This was despite geopolitical conflicts, rising oil prices, and inflationary concerns. AI and technology companies led the way, and better than expected corporate earnings raised investor confidence.
In the United States, all major indexes rebounded from the sharp declines of the 1st quarter. Investors sought the excitement of investing in high flying technology and AI stocks led by Nvidia, Broadcom, and Micron Technology. The technology sector posted 39% returns led by semiconductor companies. Small cap stocks, which have recently lagged large cap stock performance, soared 24%. This is in comparison to the S&P 500's 15% gain.
April
Elevated volatility caused large daily market swings. Energy stocks led the way and outperformed, while many growth stocks suffered early in the month.
The Iranian conflict launched oil prices beyond $100 per barrel. Economic inflation that followed peaked during the quarter, making investors nervous that the Federal Reserve might raise interest rates. Technology company earnings late in the month calmed investor attitudes, helping markets shrug off inflationary concerns driving markets higher.
European markets sold off early in the month due to energy price inflation unease caused by the conflict in Iran. Asian markets were mixed, suffering from similar concerns that plagued Europe. However, semiconductor stocks outperformed, pulling stocks higher to end the month.
May
The broad markets rallied. This was led by technology and communication service stocks.
On the heels of an off and on-again ceasefire and peace deal with Iran, oil prices jumped higher, then dropped like a rock to end the month easing inflationary pressures. Thus, causing the markets to spike as strong earnings reported by AI, cloud computing, and semiconductor companies drove investors to invest.
The global AI chip demand that is needed for AI technologies caused South Korea and Taiwan markets to swell. Consequently, emerging market indexes extended their move higher as technology exports accelerated. The effects of weak consumer spending drove Chinese markets to weaken as domestic growth retreated.
June
U.S. indexes finished the quarter with impressive gains and expanding market breadth.
The record-setting SpaceX IPO had investors in a euphoric state and boosted risk appetites. Oil prices continued to decline, reducing inflation fears. Investors became more confident that economic growth would continue despite higher interest rates. Continued strong corporate earnings greenlighted markets higher to end the quarter.
International equities continued their rally as energy prices dropped. European markets bounced back after declining in May. Asian semiconductor companies continued to lead the way with strong gains. Emerging markets stocks posted one of their best quarters since 2009.
The 2nd Quarter of 2026 marked a significant change from uncertainty to renewed investor optimism. A mixture of easing oil prices, robust earnings, and perpetual investing in AI infrastructure drove a broad rally in U.S. and International markets. All the while, investors remained cautious to risks from geopolitical conflicts, a slowing Chinese economy, and the possibility of further interest-rate increases later in the year as inflation runs hot due to higher energy prices. With these factors in play, we at Renew Family Wealth would like to assist you in making sense of the investment world around you. It is our goal to help you invest appropriately based on your risk tolerance and diversify appropriately for your financial and investment needs. If you are uncertain about how you should be investing for your future or would like a second opinion do not hesitate to contact us.
Thank you to all who continue to partner with us and provide us with the opportunity to serve you and your families.
Sincerely,
Scott Miller
