NASDAQ and Small Stocks Soared Last Quarter

NASDAQ and Small Stocks Soared Last Quarter highlights strong U.S. equity performance in the second quarter, with the NASDAQ Composite gaining 21.4%, the Russell 2000 up 21.2%, the S&P 500 rising 14.9%, and the Dow Industrials up 13.1%, citing Yahoo Finance. The article notes that these were the best quarterly results for the NASDAQ and S&P 500 in six years, but argues that price-to-earnings multiples are being compressed because the stock gains are below the average annual earnings growth expected for NASDAQ constituents, per FactSet. It forecasts third-quarter GDP growth accelerating to a 5% to 6% annual pace, supported by AI productivity gains, expanding energy exports, and firm consumer spending, with AI and data center order backlogs reaching a three-year delay. It also points to memory stocks improving and SK Hynix raising $28.07 billion via an IPO offering 17.79 million ADR shares on NASDAQ, alongside mention that SpaceX is set to be added to the NASDAQ 100 with limited weight due to a thin float after selling only 5% of outstanding shares. The piece also reports ISM services coming in at 54 in June, down from 54.5 in May, and says readings above 50 indicate expansion.