Key facts
- US stocks are on track for their best quarterly performance in years.
- The S&P 500 and Nasdaq are set for their strongest quarterly performance in six years.
- The Dow Jones Industrial Average is on track for its best quarter since 2022.
- The SOX chip index nearly doubled in the first half of 2026.
- Intel, Marvell, Micron, and Sandisk saw significant share price increases.
- Software companies like Intuit, HubSpot, and Atlassian have seen substantial year-to-date losses.
- European shares are poised for their strongest quarterly gain in over five years.
- The STOXX 600 index was up 0.6% on Tuesday.
- The STOXX 600 index is set for a 9.7% quarterly climb.
- BlackRock reduced its bullish stance on emerging market stocks and hard-currency debt.
- BlackRock favors euro zone government bonds.
US stocks are on track for their best quarterly performance in years, with the S&P 500 and Nasdaq set for their strongest quarterly gains in six years, while the Dow Jones Industrial Average eyes its best quarter since 2022. This broad market rally is fueled by a significant surge in tech and chip stocks, robust corporate earnings that have surpassed expectations, and waning geopolitical tensions, particularly between the US and Iran. The SOX chip index has nearly doubled in the first half of 2026, driven by soaring demand for artificial intelligence applications. Major chip companies like Intel, Marvell, Micron, and Sandisk have seen substantial increases in their share prices.
In contrast to the broader tech sector's success, software stocks are experiencing significant sell-offs. This downturn is attributed to fears that artificial intelligence will disrupt existing software business models. Prominent software firms such as Intuit, HubSpot, and Atlassian have recorded substantial year-to-date losses, despite the overall strong performance of the tech industry this quarter.
European markets are also participating in the rally, with the STOXX 600 index poised for its strongest quarterly gain in over five years. This optimism is driven by advancements and investment in artificial intelligence, alongside a reduction in Middle East tensions. The STOXX 600 index was up 0.6% on Tuesday, on track for a 9.7% climb this quarter.
Amidst these equity market movements, BlackRock has adjusted its investment strategy. The BlackRock Investment Institute has reduced its bullish stance on emerging market stocks and hard-currency debt, shifting to a neutral position on both. Conversely, the firm favors euro zone government bonds and holds a positive outlook on emerging market local currency debt.