U.S. stocks closed higher Friday, capping off a strong quarter that saw the Nasdaq composite head toward a 20% gain.
The S&P 500 is also set to record its best quarterly performance since 2020. The rally surprised many on Wall Street.
Investors brushed aside concerns over ongoing geopolitical instability and uncertainty around artificial intelligence. Those fears had weighed on markets earlier in the year.
Technology stocks led the charge, driving much of the Nasdaq’s recent momentum. Major tech companies reported better-than-expected earnings.
The broader market benefited from resilient consumer spending and a still-strong labor market. Those factors helped offset fears of an economic slowdown.
Treasury yields edged lower as traders adjusted expectations for Federal Reserve policy. The central bank has kept interest rates steady for months.
The quarter’s gains defy earlier predictions of a downturn. Many analysts had expected war and AI jitters to derail the rally.
Instead, the market focused on solid corporate profits and improving economic data. This left the S&P 500 and Nasdaq near record levels.
Investors now look ahead to the next quarter with caution. The path forward remains uncertain given global risks and potential for a shift in monetary policy.
